SanDisk (NASDAQ:SNDK) is expected to post earnings of $0.15 EPS on revenues of nearly $793 million, according to First Call. SanDisk usually offers guidance, and First Call pes next quarter at $0.28 EPS and almost $909 million in revenues.
Intel (NASDAQ:INTC) already gave some mixed messages after saying flash memory prices have seen margin pressure, but it also noted the future of flash drives will ultimately rival much of the hard drive market that is currently dominated by Seagate (NYSE:STX) and lesser competitor Western Digital (NYSE:WDC). As a reminder, Jim Cramer was talking up SanDisk yesterday ahead of today’s earnings, although shares are down 2% today. We still think Moore’s Law has to come further into play for this to happen, but the trend has started in its its infancy stages.
Western Digital (NYSE:WDC) is still an active member of the 24/7 Wall St. BAIT SHOP of takeover candidates, despite it being involved in acquiring Komag (NASDAQ:KOMG). We showed this as a position to lighten up half of the position in January and then noted on February 5 that shares might be getting close to a re-entry for that half of the stock. Western Digital today is trading at 52-week highs and looks like it could make a run at the multi-year highs seen in early 2006.
Jon C. Ogg
July 19, 2007
Jon Ogg can be reached at email@example.com; he does not own securities in the companies he covers.