SNDK–Past, Present and Future
This is one of the most beautiful charts I’ve ever seen….doesn’t matter if you’re a fundamentalist or a technician - there is something for everyone here.
For the guys that actually know what a P/E ratio is:
There have only been two times in SNDK’s recent history when its P/E has gotten this low. First time was in 7/01/05. After hitting that low the stock rallied from $25.00 to $65.49 without even a real dip on the entire run. Why did that happen? The iPod NANO was announced and it soaked up all the outstanding flash memory in the market. Second time was in July ‘06. Stock was dragged down in the semiconductor slump and hit a low of $37.34 and rallied without looking back to $62.24.
Anyone else see a little coincidence to what we have going on right now? Best part is that we actually have BOTH of those situations going on right now. Semi slump AND all future iPods about to convert over to NAND.
Chart here:

Market cap is now $7.6B. SNDK has $3.3B in cash, minus the very favorably priced 1% per annum debt, leaves you with $2.3B in cash or a little over $10 share in cash since they have about 210MM shares outstanding. So that is a net cash market cap of $5.3B or $25.23 per share.
Oh yeah…and the company is doing almost 2x as much in revenue and has 2-3x as much cash than at either of those times. Pretty funny actually. Think we’re close to a bottom?
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