Seeking Alpha

SanDisk, Micron slip; BofA worried about SanDisk's Q1, NAND sales

  • Ahead of SanDisk's (SNDK -1.8%) April 16 Q1 report, BofA/Merrill (Underperform) thinks the NAND flash giant could miss both its Q1 and Q2 estimates due to demand and pricing weakness caused in part by an inventory overhang.
  • Also: Digitimes reports some memory module suppliers are pushing bundled DRAM/NAND solutions to "help ease the oversupply of NAND flash products in the market."
  • The site adds downstream NAND buyers "have been reluctant to purchase NAND flash in large volumes" due to inventory concerns. At the same time, its sources think NAND prices could stabilize as Apple ramps its orders to SanDisk and Micron (MU -0.9%) ahead of its 2H product launches.
  • SanDisk outperformed a week ago after Micron reported an 11% Q/Q increase in trade NAND sales, with a 35% increase in bit growth (fueled by mobile and SSD-related demand) more than offsetting an 18% ASP drop.
  • BofA issued a bearish note on Micron ahead of its FQ2 report. The company beat estimates, but joined a tech selloff the next day.
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Comments (5)
  • mjtroll1
    , contributor
    Comments (1670) | Send Message
     
    I took advantage of the sanddisk outperformance a week ago to enter sndk/soxx pair trade short sndk based on valuation.. it has had a significant pullback but am expecting further weakness at which point I would cover/reverse as trend is for sndk outperformance
    11 Apr 2014, 12:53 PM Reply Like
  • TFCAB
    , contributor
    Comments (2021) | Send Message
     
    the way BofA is going, i think they should focus on their stock instead
    11 Apr 2014, 12:58 PM Reply Like
  • Wilson Wang
    , contributor
    Comments (908) | Send Message
     
    Hahahaha! I got a good laugh off of this.
    12 Apr 2014, 04:06 AM Reply Like
  • Arthur Fisher
    , contributor
    Comments (285) | Send Message
     
    What happens when money managers stop thinking like capitalists? FAJ 1977.
    11 Apr 2014, 01:50 PM Reply Like
  • chucklab
    , contributor
    Comments (96) | Send Message
     
    BoFA has become just as bad as ML. They should unload ML, and before hand, clean up their act with the consistently underperforming analysts, who never get anything right with regard to MU or SNDK. They just don't understand the bus. And, don't know how to look beyond their nose, essentially the Pinocchio effect on what they write and get away with. They have missed the mark every single Q going back a year, and on both.
    11 Apr 2014, 04:31 PM Reply Like
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