{"id":1253,"date":"2013-02-07T22:23:24","date_gmt":"2013-02-07T22:23:24","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=1253"},"modified":"2013-02-08T19:32:46","modified_gmt":"2013-02-08T19:32:46","slug":"chart-of-the-day-2713-sandisk-sndk-beneficiary-of-weak-yen","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=1253","title":{"rendered":"Chart of the Day 2\/7\/13: Sandisk (SNDK) – Beneficiary of Weak Yen"},"content":{"rendered":"
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Sandisk reported earnings at the end of January that were quite strong. The stock ended\u00a0Jan ’13 up 14% for the month, far better than AAPL, and was our best “top 10” performer.<\/p>\n

The tailwinds continue for the flash and SSD manufacturer: both the weak yen and very easy comp’s through the June quarter, should keep a bid under the stock even with a tough market. A note out of Sterne Agee after the 4th quarter report details that every 10% depreciation in the yen is worth 400 bp’s or 4% of gross margin upside for SNDK.<\/p>\n

It was late in the March quarter of 2012 and then again the June quarter where SNDK fell apart. SNDK’s forward 4-quarter estimate fell from $4.71 as of the Jan ’12 earnings report to $1.87 after the April earnings report. That is ugly weakness.<\/p>\n

The flip side of that is occurring today. SSD’s are growing as a percentage of revenues and SNDK became an Apple supplier in mid-2012, plus the company is lapping those easy comp’s.<\/p>\n

Stay with the stock. We think there is more upside ahead. Our internal model values SNDK at $60 per share. We’d buy more at $45.<\/p>\n

You want to be selling SNDK when the valuation looks great, i.e low p.e, low cash-flow valuation. Earnings are extremely volatile. If the forward estimate gets much above $5.50 – $6 per share, we’d be a seller.<\/p>\n

Trinity Asset Management, Inc. by:<\/p>\n

Brian Gilmartin, CFA<\/p>\n

Portfolio manager<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

Sandisk reported earnings at the end of January that were quite strong. The stock ended\u00a0Jan ’13 up 14% for the…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[37],"tags":[],"class_list":["post-1253","post","type-post","status-publish","format-standard","hentry","category-sndk"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/1253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1253"}],"version-history":[{"count":5,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/1253\/revisions"}],"predecessor-version":[{"id":1259,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/1253\/revisions\/1259"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}