SanDisk Corporation : Business is bad
 |
04/24/2012 | 10:25am
Opinion : Bearish under 36.5 USD
Target price : 32.5 USD
Stop loss: 38.1 USD
|
NASDAQ
Computer Hardware |
SanDisk Corporation is the world leader in the design, production and sale of flash memory (persistant memory for use in data storage in battery-powered devices).
For the first quarter, the group released disappointing results. In early April, the company had launched a profit-warning due to lower demand. The company made a net profit of $ 114 million, or $ 0.46 per share, compared with $ 224 million, a year earlier. These results are worse than Thomson Reuters’ consensus of $0.63.
Moreover, the management foresees a revenue between $950 million and $1.05 billion for the second quarter whereas the consensus counted on $1.3 billion.
Graphically, SanDisk‘s share collapsed due to the releases. Two wide bearish gaps have been formed. This decline has naturally created a lot of frustration and it is unlikely to see a rebound of the stock until the USD 32.5 long-term support.
In this context, it would be profitable to take a short position on this security to target the USD 32.5. However, a stop-loss will be fixed at around USD 38.
 |
Alexandre Nutte
Copyright (c) 2013 4-Traders.com |
Disclaimer : 4-Traders.com is not registered as a securities broker-dealer or investment adviser with any jurisdiction and is not providing any personalized financial, investment or tax advice. 4-Traders cannot assess or guarantee the suitability of any particular investment to any personal situation. Accordingly, you bear complete responsibility for your own investment, financial, and tax research and decisions and should seek the advice of a qualified professional prior to making any decisions based on 4-Traders' website information. This article is provided solely for informational purposes, and does not constitute an offer or solicitation to buy or sell any securities. All opinions expressed and information and data provided therein are subject to change without notice.
|
|
|
|
| Profitability |
2013e |
2014e |
|
Operating Margin (EBIT / Sales)
|
24,8% |
27,1% |
|
operating laverage (Delta EBIT / Delta Sales)
|
5,04x |
2,02x |
|
Net Margin (Net Profit / Revenue)
|
14,8% |
16,3% |
|
ROA (Net Profit / Asset)
|
8,80% |
9,66% |
|
ROE (Net Profit / Equities)
|
11,5% |
11,9% |
|
Rate of Dividend
|
- |
- |
|
|
|
