SanDisk Corporation (NASDAQ: SNDK) – This company makes and distributes NAND-based flash storage card products that are used in various consumer electronics products.

The stock been a favorite of ours since the market lows in March 2009, and it has been a winner. It was first recommended at under $25 and doubled within one year.

Now, following a consolidation along its 200-day moving average, it is again worth considering both as a trade and as a quality addition to a portfolio of technology stocks. SNDK was one of the most actively traded stocks yesterday following an upgrade by R.W Baird, which raised its 12-month target to $56 from $42. Ford Equity Research maintains its “strong buy” recommendation, noting that SanDisk’s operating earnings yield of 10.8% ranks above 93% of the companies in its sector. 

On the chart, the rising stochastic and buy signal indicate that the bottom at $38 should hold. Note that yesterday’s gap at $40.15 to $41.05 could partially close, so the buy under price for traders is $40.75. 

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.