SanDisk Corporation (NASDAQ: SNDK) has what feels like the good side of a perfect storm pushing it. As the leader and pure-play in flash memory, it is a winner in the current climate where more and more consumer electronics are using flash memory. All this week, we have seen Forbes write about flash memory margins rising as will SanDisk; TheStreet.com wrote “Why Shares of SanDisk Have Doubled” and S&P raised its rating on SanDisk as the flash memory sector recovers… But what if flash memory prices are seeing a soft May? One industry group is pointing to softer flash memory price this morning.
DRAMexchange.com has noted this morning: “1HMay NAND Flash average contract price roughly declined 1% to 8% due to the slow season effect.”
The article shows where prices have been impacted by second quarter slow season effects and instability anxiety in partial financial markets recently. It said that the first half of May saw NAND Flash average contract price roughly declined 1% to 8%. Currently cost-competitive TLC is mainly applied on the memory card and UFD products.
The note does have a caveat that could render any caution as silly as it noted, “Since 2Q is the traditionally slow season for memory card and UFD while TLC white-brand memory card supply is increasing, NAND Flash suppliers adjusted down 1H May TLC chip contract price 1%-8% at the purpose of promotion in slow season.” It also noted, “NAND Flash suppliers will also appropriately control 2Q10 output growth to ease the impact for slow season effect.”
Keep in mind that this also flies in the face of just a month ago when DRAM joined Flash Memory in shortage concerns. This is also just one article in a giant sea. It also does not mean for sure that all producers and suppliers are seeing the same effect.
DRAMexchange.com’s full article is here for reference.
If there is any concern at all, it is not being felt. So far SanDisk shares are indicated up 1.4% at $42.25 on thin volume this morning. The 52-week range is $12.04 to $44.89.
JON C. OGG
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