Now, 52% of young adults live with their parents—the highest rate ever, surpassing even the Great Depression.
The most educated and most indebted generation in history did everything they were supposed to do and got this.
The system. Does. Not. Work.
Why SanDisk $SNDK is going much higher IMHO
I am going to keep this stupidly simple.
SanDisk $SNDK is down 25% from it's all time highs. That's a descent correction, won't you say?!
SanDisk currently does 13B revenue and is trading at 20 times sales (P/S ratio).
Analyst next 12 months sales expectation is 43B. If SanDisk doesn't beat and barely hits that number and the P/S ratio drops in half, say 10 times, you get a market cap of 430B.
Current SanDisk market cap is 258B. That's 66% returns with no beat and raise and P/S ratio cut in half. That from a 25% drawdown situation already.
Now what do you think really will happen? SanDisk is gonna crush the next few earnings. P/S will most likely drop to 10 but instead of 43B sales, SanDisk probably does 55B. So the market cap, probably will be 550B.
Which means 113% upside with a multiple compression into half. Sometimes, people can't imagine the wave of growth about to hit them.
In four quarters, SanDisk will probably earn 15B quarterly and make 8B in free cash flow. 8B in fcf per quarter!! Read that again.
I don't think we are not bullish enough on $SNDK
Again, if they don't beat and raise, I am most likely reducing exposure but until then WHY? Let the business cook!
There's a 100% Chance of Death and Taxes in your lifetime...
There's also a 100% Chance you see:
1) Micron $MU hit $2,000
2) $DRAM hit $200
3) $VOO hit $1,000
4) $QQQM hit $500
5) NVIDIA $NVDA hit $400
In your lifetime...
FUTURES PUMP 4TH OF JULY WEEK BABY
🇺🇸🇮🇷 USA and Iran agree to halt strikes and meet this week
GREEN FIREWORKS, GREEN HOT DOGS, GREEN EGGS AND HAM
Going to be looking like Dr Seuss this week