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June 15, 2006

The future of our world includes flash, Thurs., 6/15/2006 11:57 AM

I have always taken joy from the fact that my crystal ball works so well on a sunny day. I have been waiting for the arrival day of a flash memory chip big enough to hold all the thoughts that roam in my head. That day may be here.

The UBS research team provides some excellent info and insights into the business of flash memory in this report. Of course (what else) they favor Cara 100 Sandisk (NDQ: SNDK) and another I have written up positively, Micron (NYSE: MU). Download UBS Flash Report

GICS 45 SanDisk Corp. (SNDK) (SNDK) Financial Data

I was there four weeks ago at the bottom of the chip and dip period, with my article called "Seeking a bottom for the chips". MU had fallen to $15.36; I said May 18 I would buy it at $15. It dropped below $15 on June 13.

I also said I would buy SNDK in the low to mid 40's, but SNDK dropped into the high 40's only. I'm thinking SNDK will rally from here but may come to my price in a broad market sell-off. If so, MU will also likely come back to my $15 price.

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For those new readers who are not aware of my crystal ball: recent article

photo 1 photo 2 photo 3 photo 4

It definitely works better on sunny days, and when I'm near the water. hahaha

Posted by Posted by Bill Cara on June 15, 2006 11:58:42 AM | Category: 45 Info Technology , Flash Memory

Discourse

From someone who's just now reading Murphy's book on TA, I'd be interested in peoples' opinions on SNDK's chart. Is that a big honkin' head and shoulders pattern dating back to last November (left shoulder)? If so, the neckline was broken around $57.50 three weeks ago.

Consistent with Bill's crystal ball, and Murphy's writings, a rally to the neckline at $60 would not be unexpected, followed by a steeper sell-off, likely in sympathy with the broader market as Bill gazes on above.

Just a thought.

Posted by: doug11 [TypeKey Profile Page] at June 15, 2006 1:33 PM [link]