Wednesday, June 16, 2010

Bookkeeping: Restarting Sandisk (SNDK)

I have not touched memory company Sandisk (SNDK) since 2007.  Let's be clear, this is a pure trading stock and not an investing stock at least from these eyes.  A pure cyclical, when inventories get bloated (as they always do) this is the type of stock that drops 40% in a few months.  But for now, with the Apple iPad at its back among other things, the momentum is with it.  So I'll jump back into the fray as I'm looking for some new names for the long side of the portfolio and this is one of the best charts I can find.   The stock was mentioned in Barron's this weekend so got the Monday morning bounce... while that created a 'gap', it also took the stock over upper $47s which had been a key level of resistance.

I will begin with a 2.1% exposure.

Quick video hit on the name below.

Long Sandisk in fund; no personal position


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