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Wall Street consensus : 0.75 -
StockScouter rating : 10 / 10
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Whisper Number for this stock : 0.82
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Schaeffer rating for this stock : 3 / 10
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Power Rating : 4 / 10
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Insider Trading (last 52 weeks) : ($97.91M)
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Zacks Analysts Rating: Hold
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Option Trading: Apr 2007 40 Call
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Implied Volatility (IV) for Mar 2007 $40 Strike : 50.77%
Sales, Income & Growth – For the past 12-months, SanDisk registered $2.84 Billion sales from the industry’s $3.29 Billion. Income amounted to $367.95 Million from the industry’s $282.25 Million. While SanDisk 12-months sales growth is at 34.6%, the income growth is in the red of -7.30%.
Profitability & Financial Health – For the past 12-months, net profit margin is in the region of 12.9%. SanDisk has a debt/equity ratio of 0.35 compare to industry’s ratio of 0.25
Stock Resistance & Support Level – The resistance is at 44.03 (50-day moving average) while the first level support is at 37.34 (52-week low).
Risks – The price-to-earnings multiple is close to the average for all stocks within the same sector. The IV is rather high for Mar 2007 $40 Strike which is at 50.77%.
Shares of SanDisk, which have traded between $37.34 and $72.36 over the last year, fell roughly 20 percent during the quarter to a Dec. 29 close of $43.03 on the Nasdaq. The stock took the biggest one-day hit during the quarter on Oct. 20, when it fell from $61.73 to $49.15 after the company posted third-quarter results.
The risk of investing this stock is quite high even though the shares are under heavy accumulation by financial institutions. The high IV compounded the risk. SanDisk stock needs an excellent result and upside guidance for a huge-gap-up in order to make money. But I’ll play on contrarian – I’ll bet on Option Call instead of Put due to the fact this stock was being punished for the last 3 months since its’ earning announcement. With its’ current price of $42.20 not too far away from its’ 52-week support at $37.34, I figure the stock price have absorbed all the negative considerations listed above.
In the meantime, I’m still researching Websense Inc. (Nasdaq: WBSN, stock) of which its’ Feb 2007 $22.50 Strike have been bid-up today. The Estee Lauder Companies Inc. (NYSE: EL, stock), manufacturer and marketer of skincare, makeup, fragrance and hair care products looks quite promising as well – will research further on this stock which is expected to announce its’ earning tomorrow, Wednesday,
Jan-31-2007 before opening bell.
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January 30th, 2007 by financetwitter
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