Calls of Note Part 3

- WR Hambrecht notes recent channel checks have indicated that the NAND flash memory market is recovering from weakness in end market demand and rapid price declines that it experienced during most of H1:06. Firm's data points signal the following: 1) the month-over-month book-to-bill in the Q2 has been rapidly increasing and the month of June is now tracking within normal seasonality; 2) recently, two large OEMs began to increase their orders for NAND flash memory chips from Samsung Semiconductor (believe Apple and Sony); 3) expects pricing stabilization to continue for NAND flash memory in the month of June, although they anticipate SanDisk to likely drop its flash memory card pricing in early July; and 4) most of firms' channel checks for NAND flash memory demand are very positive for H2:06, especially for mobile handsets with card slots, gaming and MP3 players. In their research coverage universe, they believe that these data points are likely positive for SNDK, SIMO and to a lesser extent, FLSH.

Notablecalls: This looks like an actionable call.