Sandisk – will sell into strength

Output in NAND being reduced could further benefit spot pricing (which is up 2-5% overnight). Decreases from Samsung, Sandisk's most significant royalty income source, will have a negative effect on profitability. Furthermore, Samsung intends to negotiate royalty arrangements lower with Sandisk over the next few months. There's still near-term chop to come. It's probably appropriate to sell the stock. It looks higher first, I think.