An opposite perspective on SNDK and the memory sector, by Eric Savitz, at Barron’s Tech Trader Daily.
Memory Trouble: SanDisk Comments, SMOD Warning, Possible Samsung NAND Price Cut Has Sector Reeling
Memory stocks are getting bashed by a flurry of troubling news.
In a talk at the J.P. Morgan tech conference in Boston yesterday, as Tiernan Ray reported here , SanDisk (SNDK) CEO Eli Harari provided a gloomy outlook on the prospects for the NAND flash memory sector. J.P. Morgan chip analyst Paul Coster followed up this morning with a downbeat analysis of Harari’s comments.
“SNDK’s CEO provided a sobering overview of the company’s near-term prospects, stressing the depth and length of the NAND cycle downturn, and the headwinds created by high oil prices and a slowing U.S. economy,” he wrote in a research note. “Overall, we came away confident in our below-consensus EPS forecast for ‘08, and sensed there could be downside risk to it.” He maintains a Neutral rating on the stock.
Meanwhile, as noted earlier, memory module maker Smart Modular (SMOD) reduced its guidance for its fiscal third quarter ending May 30, citing among other reasons a difficult pricing environment…
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