Notable Calls

- Oppenheimer is out positive on Sandisk (NASDAQ:SNDK) saying their hannel checks as late as last night indicate that NAND flash supply continues to be tight from the majors Samsung and Hynix. Recent spot price declines have to do with Toshiba pressuring prices in a very low volume NAND spot market. SNDK slid last night on some misplaced concerns with IMFT/Apple. Firm believes some APPL orders might have been rerouted from Micron to the flash majors Samsung/Toshiba. Their checks indicate Apple orders intact and in fact very strong, with new iPod/iPhone refresh/launch on the way. SNDK should see upside to topline, market share gains and gross margins. NAND flash card OEMs as of last night indicating that they will end month of August in NAND flash shortage. Reiterating Buy and $70 PT on SNDK.

OpCo believes SNDK is fundamentally in a very sound position. They believe 1) company has firmly established a cost leadership over competition - Samsung and Hynix over the past several quarters. Micron still remains fairly small to be market mover. Also 2) SNDK's licensing outlook appears more stable and predictable than in the past 4 quarters. Also they believe an insatiable appetite from Apple and a continuing NAND supply shortage is sapping available NAND supply capping Taiwanese flash card OEMs and resulting in 3) market share gains for SNDK.

Notablecalls: Expect to see buy interest in SNDK early on.