I have been bearish lately, especially on tech stocks until this last week. Now it seems some beaten down quality tech stocks are bouncing off a bottom and finding their way higher.
A case in point is SanDisk (SNDK). With the bottom falling out of flash memory prices, SanDisk began a long slide that started last November. It appears to be over now. Several analysts have recommended the stock, quoting an expected pick up in sales later in the year with that higher volume driving higher prices. In addition, there have been announcements that SanDisk, in partnership with Hynix, may be rolling out a new fabrication process that could double the amount of data per chip and lower manufacturing costs. There is a perception that we have seen the bottom in SanDisk's share price and that now is the time to get in. The stock has already shot up from the mid-30's to 43.38.
The TradeRadar chart below confirms this outlook and shows a clear BUY signal generated just within the last couple of days.
Click chart to view larger image