At The Motley Fool, we poke plenty of fun at Wall Street
analysts and their endless cycle of upgrades, downgrades, and
"initiating coverage at neutral." So you might think we'd be
the last people to give virtual ink to such "news." And we
would be -- if that were all we were doing.
But in "This Just In," we don't simply tell you what the
analysts said. We'll also show you whether they know what
they're talking about. To help, we've enlisted
Motley Fool CAPS, our tool for rating stocks and analysts
alike. With CAPS, we track the long-term performance of Wall
Street's best and brightest -- and its worst and sorriest,
too.
And speaking of the worst ...
Are you scared yet,
SanDisk (Nasdaq: SNDK) shareholders?
Yesterday,
Wedbush Morgandowngraded your stock to the equivalent of
a sell rating, sending the stock into a 3% tailspin. And why
did it do that? You tell me:
Q1 NAND supply will likely exceed demand due to NAND
process technology die shrinks increasing NAND output
coupled with typical weak seasonal Q1 end market demand. We
expect the imbalance in the NAND supply environment to
pressure Q1 bit growth, ASPs, gross margin and revenue
below our prior expectations.
"Technology die shrinks?"
"NAND output coupled?"
"Q1 bit growth?"
Who
talkslike that? It's like the analysts at Wedbush
are the same folks who write the instruction manuals that
"help" us set up our plasma TVs, and assemble the kids'
bicycles late at night on Christmas Eve.
Clear writing equals clear thinking ...
... and judging from Wedbush's record in the
semi-space, the converse is also true. For while it's true
that Wedbush has picked the odd winner in this industry from
time to time ...
Stock
Wedbush Says:
CAPS says:
Wedbush's Picks Leading S&P
By:
Intel (Nasdaq: INTC)
Outperform
****
12 points
Broadcom (Nasdaq: BRCM)
Outperform
***
2 points
... it's more often the case that when Wedbush says a
semiconductor stock is going up, it proceeds to drop
instead:
Stock
Wedbush Says:
CAPS says:
Wedbush's Picks Lagging S&P
By:
NVIDIA (Nasdaq: NVDA)
Outperform
****
12 points
Micron Technology (NYSE: MU) Continued... |