Cramer: SanDisk Is The Name That Wall Street Has Defended Over And Over Again
SanDisk Corporation (NASDAQ: SNDK) shares plunged heavily on Thursday on back of the company cutting its sales outlook for the first quarter. CNBC's Jim Cramer recently discussed why analysts shouldn't be defending SanDisk anymore.
Shares of SanDisk traded recently at $66.72, down 17.8 percent.
The Problem With SanDisk
"The problem is that SanDisk is the name that Wall Street has defended over and over and over again," Cramer said. "This is a commodity company that is now had three straight misses and all the analysts ever do is apologize for it. I think that the release this morning will make that difficult, [we are] finally having analysts breaking ranks."
Realted Link: SanDisk Cuts Revenue Forecast, Shares Plummet
"Don't forget what happened with SanDisk. Remember the key to all semiconductor land is 'are you in Apple?' Okay, but Apple doesn't let people say that we are in, go ahead and talk about how great Apple is, they don't like any of the suppliers to talk about Apple."
He continued, "But Apple is buying its flash chips from Samsung and Samsung -- even though it's Apple's nemesis -- and that was SanDisk's business lost and I think that's kind of continuing, plus SanDisk missed the cycle. So, we can look at SanDisk and say that that's their tail."
The Problem With Semiconductor Space
"Taiwan Semi yesterday in a conference in Europe said that the inventory is a little bit too high, unnoticed comments, Goldman pointed out today and also talked about semiconductor equipment, maybe they are going to reuse equipment, not spend as much capex. That is also percolating," Cramer concluded.
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