ThinkPanmure is out with a major call on Sandisk (NASDAQ:SNDK) noting the stock has been hurt by collapsing NAND pricing and build up of inventory at retail, OEMs, and the Taiwan module houses. However, NAND pricing could stabilize. Firm's checks indicate that Samsung is allocating 50M chips of 8Gb MLC to AAPL in July and August, which could substantially reduce Samsung's inventory and reduce some of the price pressure on NAND and inventory overhang in the market. In firm's view, while not a panacea for the inventory in the channel or at retail, it should stabilize NAND pricing. NAND spot pricing in the last two days has been trending up modestly.
While Bears have been calling for a renewed drop in NAND pricing, they believe the 50M chip order could remove a lot of NAND inventory and reduce a lot of inventory overhang from Samsung. Think believes it will also stabilize the NAND spot and contract pricing trends. If the pickup from the AAPL iphone, given what they view as an attractive $199 in the U.S. and free offers in some countries, is ahead of forecasts, it could drive more allocations from Samsung and help stabilize NAND pricing through the quarter
Reits Buy and $40 tgt
Notablecalls: SNDK will trade over $18 level today following this wonderful call by ThinkPanmure's Vijay Rakesh. Also note that Morgan Stanley is closing out their short SNDK idea this morning which is likely to contribute to buy interest.
Well done Vijay
PS: Digitimes talking about NAND this morning saying AAPL is back and spot pricing is going to start reflecting it.
While Bears have been calling for a renewed drop in NAND pricing, they believe the 50M chip order could remove a lot of NAND inventory and reduce a lot of inventory overhang from Samsung. Think believes it will also stabilize the NAND spot and contract pricing trends. If the pickup from the AAPL iphone, given what they view as an attractive $199 in the U.S. and free offers in some countries, is ahead of forecasts, it could drive more allocations from Samsung and help stabilize NAND pricing through the quarter
Reits Buy and $40 tgt
Notablecalls: SNDK will trade over $18 level today following this wonderful call by ThinkPanmure's Vijay Rakesh. Also note that Morgan Stanley is closing out their short SNDK idea this morning which is likely to contribute to buy interest.
Well done Vijay
PS: Digitimes talking about NAND this morning saying AAPL is back and spot pricing is going to start reflecting it.
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