SanDisk’s High-Volume Breakout Accompanied by ‘Buy’ Signal

by Sam Collins | March 26, 2013 1:04 am

SanDisk Corp. (NASDAQ:SNDK[1]) — This manufacturer of flash memory storage products appears undervalued. Analysts believe that the demand for its products will increase rapidly due to the growing use of solid-state drives, ultrabooks, tablets and smartphones. Greater dependence on “the cloud” also creates more demand for flash-memory chips. 

S&P raised their 2013 operating earnings per share (EPS) estimate $0.28 to $4 and $0.13 to $4.70 for 2014. It estimates $5 for 2015. 

In mid-March, the stock broke from a wide consolidation that took almost two and a half years to form. This significant breakout accompanied by high volume and an MACD buy signal could result in a quick trade to $60. Longer term, due to price-to-earnings (P/E) multiple expansion, SNDK might even see $70 this year.

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