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JimVanMeerten (62.35)

Flash memory in your portfolio

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December 23, 2009 – Comments (1) | RELATED TICKERS: SNDK

I was screening on BarChart for another addition to the Van Meerten/BarChart New High portfolio -- VMNHI when I came across Sandisk Corp -- SNDK. Sandisk Corporation designs, manufactures, and markets flash memory storage products that are used in a wide variety of electronic systems. The company have designed flash memory storage solutions to address the storage requirements of emerging applications in the consumer electronics and industrial/communications markets. Its products are used in a number of rapidly growing consumer electronics applications, such as digital cameras, personal digital assistants, portable digital music players,digital video recorders and smart phones. Look under your Christmas tree and I bet a gift under it contains a component made by them.

SNDK has had 17 price advances in the last 20 sessions and is 5 for 5 recently. A 65 day price appreciation of 47.39% is in the ball park I like. 13 of 13 BarChart technical indicators give the stock a 100% buy rating.

Wall Street brokerages have recently given out 2 new recommendations of Buy at ThinkEquity and Outperform at JMP Securities. Analysts look for a 17.56% increase in revenue next year and a 16.25% annual increase in EPS for the next 5 years.

Other sites give confirmation: Wall Street Survivor has a 5/5 Survivor Sentiment, 4/5 fundamental rating and a 5/5 technical rating. Motley Fool members think the stock will out perform the market with a vote of 1612 to 130. The All Stars confirm also by a vote of 416 to 28.

What's not to like?
1 - BarChart rating of 100% buy and 17 of 20 sessions of price increases

2 - Positive Wall Street brokerage coverage

3 - Confirmation on other sites of my research

Recommendation: Adding to Van Meerten/BarChart New High model portfolio -- VMNHI -- around 28.25 with a protective stop loss no lower than 22. The stock has really been moving lately so I'd make sure you increase that stop loss at least once a week.

Jim Van Meerten is an investor who writes on financial matters. Please leave a comment below or email JimVanMeerten@gmail.com

Disclosure: No position in SNDK at the time of publication,

1 Comments – Post Your Own

#1) On December 25, 2009 at 2:26 PM, Wallstreetable (< 20) wrote:

I actually like SNDK prospects long term however, how do you justify a 20%+ down side risk? I'm actually short SNDK just based on the parabolic move up from $25. Feels the rubber band effect is taking place.

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