This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SanDisk Fans Hold Fast

The past month hasn't been sunny for flash memory maker SanDisk (SNDK - Get Report).

First, heavyweight Intel (INTC - Get Report) announced a joint venture with Micron (MU - Get Report) to compete in the market for NAND flash memory. Then came a negative Barron's story about a lawsuit alleging that SanDisk's NAND flash empire was founded on fraud.

Toss in a sell-side analyst downgrading SanDisk stock to sell and you get a 17% slide in SanDisk shares since mid-November.

Despite that decline, SanDisk bulls are unwavering. They dismiss the flurry of litigation between the company and Geneva-based ST Microelectronics (STM - Get Report), and the new Intel-Micron competition.

Instead, they point to the burgeoning markets -- mobile phones and eventually laptop computers -- they believe will continue to fire up SanDisk.

"Each and every one of these [lawsuits] is something that could potentially blow up on them," acknowledges Kevin Landis, CIO of Firsthand Funds, which counts SanDisk as a major holding. But SanDisk has "got a pretty good record at defending themselves and at going after people they think are infringing."

SanDisk is involved in three related patent battles against ST Micro that have so far yielded mixed results. The most threatening is the suit detailed in Barron's that was filed in a California state court by ST Micro in October.

In that suit, ST Micro alleges that SanDisk founder and CEO Eli Harari, in the late 1980s while working as a director at Wafer Scale Integration or soon after leaving the company, fraudulently filed six patent applications. Harari co-founded the company that merged with STMicro in 2000.

ST Micro says that Harari conceived of the ideas behind the patents while at Wafer Scale and that consequently, the related patents should belong to ST Micro. Not coincidentally, some of those patents are the subject of another suit filed earlier by SanDisk that charges ST Micro with infringement.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.81 0.00%
INTC $34.46 0.00%
MU $15.56 0.00%
SNDK $74.58 0.00%
STM $7.21 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs