SNDK reports AH today........
Fast money's Najarian sold already......and is "yelling SELL SNDK...because he made $3"
Najarian makes decision to buy or sell based on option terminal activity.......which is neither FA or TA......it is most uninformed/uneducated way of trading......so I say ......
SNDK is a very strong buy here.......based on FA & TA........
FA will tell you that SNDK will BEAT tonight & will guide higher........
TA will tell you that "chart looks explosive"
TA will also tell you that it is ready to go into NEW 52 week HIGHS........
FA & TA will also tell you that SNDK has lot of similarities with RIMM before ER.......
SNDK is on the verge of 3 Q of explosive growth......margins will improve substantially from Q3 which started in july......
SNDK is a bigger and better managed company.......bought FLSH last year.....
Flash Memory is going into iphone,smartphone,digital cameras,ipods......
Flash Drives which consumes less power is going into laptop.....which will be a new area of GROWTH for SNDK
Flash Memory is being used by astute proffessionals to carry important data from PC and also used as a backup tool for data,pictures,music.......
Users love its portability.....it is small & goes into your pocket with 1 gig or more of info....
Flash Memory is going into TIGHT supply......thus benefitting SNDK.......with HIGHER margins.
The following numbers are expected by serious investors/traders...and they are:
Sales
Q2.........$792.86 million
Q3.........$908.93 million
q/q ....+$116.07 million
q/q %........+14.6%
EPS
Q2...........15 cents
Q3...........27 cents
q/q..........+12 cents
q/q %......+80%
Hope you are getting a very clear picture of Q/Q SEQUENTIAL acceleration in both sales & eps......
You can also SEE the ACCELERATION in margins.....once sales RAMPS UP......why do I say that...
Because sales will go UP sequentially by + 14.6%.....but EPS will JUMP 80%......a sure sign of high margin GRAVY with increasing sales......
SNDK has a "history of beating estimate 4 Q in a ROW....and it will be no different this time TONIGHT"
So..... you have a choice of following an option terminal trader like Najarian who buys calls & puts on the same position......or show some CONVICTION to an improving & accelerating business model.......the ball is in your court......
Please do your OWN Najarian due diligence.....as I own SNDK in my portfolio.....I do not mind adding or WAITING in case markets disagrees with me for any reason TA/FA.......or sheer manipulation by some hedge funds.....I got the time, patience & strategy to deal with any reaction to SNDK earnings tonight.....my bet is on positive trend in SNDK business model.
Good luck on today's trades.
BLOG does not give buy or sell.
Saleem
No comments:
Post a Comment