Discussion in 'Stocks' started by jhaski, Nov 6, 2006.

  1. jhaski


    Hi guys,

    New trader here. I have been reading these forums for awhile now to help me get started.

    What is your opinion of SNDK?

    After its recent crash (as a result of something which means nothing in the long term) and the soon arrival of Windows Vista that can use Flash chips, do you think that SNDK is a good buy?

    Would it be a good idea to buy it after the elections?
  2. Probably not. It's a broken growth stock that has lost momentum. The insiders are selling. More competitions coming.
  3. shows SNDK equity increasing but I can not judge income. I observe yearly income increasing but quarterly income might be in a range. shows 196 million shares outstanding. I suspect stocks that have less than 100 million shares might show greater price change.

    More important than the specific stock is the trading method that you use and your ability to follow your own rules.
  4. Sandisk is a steal right now, IMO.

    It's in a growth industry, as flash memory sees increased use (cameras, mp3, etc.) and even goes so far as to supplant conventional HDs in the next couple years or so.

    It's a well run growth company, with a forward P/E of 17, and....

    It has MORE CASH on hand than LONG TERM DEBT!!!

    It's a value play.

    I purchased a block of SNDK today at $47.35.
  5. jhaski


    The stock is down 2% today; I chose wrong day to buy it :(.

    I seriously don't understand why more people aren't buying this stock.

    As a sidenote, how do you create a trading plan? (Sorry for the dumb question.) My goal was to buy the stock at about 50 and sell it when (if) it goes back up to 60. Is this a plan?
  6. You can't pick bottoms, so don't try.

    I bought it today, too.

    I'm not worried. It's balance sheet is pristine, it's a growing company, and it was hammered disproportionately when it missed Q3 (down 20%).

    As far as trading plans are concerned, I think you're speaking more in terms of entry and exit points.

    It's fine to pick a specific exit point if that's your style of trading - but you wouldn't want to ignore the charts, either. I mean, you wouldn't want to sell at 60 if the stock is spiking up on heavy volume.
  7. rcj


    Lots of day traders play with SNDK because of its volitilty. Ya want to be damn careful here. Go back for the past year an examine the price action carefully. Many, very many, inexperienced "investors" have had their a$$ handed to them with this thing. Good luck.:D

    ... rj
  8. That is not a plan. Why did you buy it?
  9. It helps to test a plan to see if it shows a profitable outcome.

    I find a Bollinger Band trading method performs well with SNDK stock price data. Using 2 standard deviations, 200 day moving average and 1 % risk my computer program shows a growth rate of about 32 percent per year and greatest drawdown of about 6 percent.

    You might search elitetrader web site for "Bollinger Band" or perhaps "trading method" and see if anything interesting appears.

    A trading summary is attached.
  10. jhaski


    The stock is now down to about 45.00; I bought it at 48.00.

    Do you think I should hold onto this stock? Or should I sell it to just cut my losses now?

    There were just a few bad articles out today that predict an oversupply of flash memory.

    #10     Nov 13, 2006