SanDisk says expects to be 'somewhat supply constrained' in 2H14 SanDisk (SNDK) is still targeting returning 100% of free cash flow to shareholders. Sees the Fusion- io (FIO) deal closing in Q3. Expects initial synergies to be modest, however sees 2H15 Fusion-io to be accretive to earnings. Sees the strongest growth in Q3 from embedded products. Sees FY14 cash CapEx approximately $600M. Comments from Q2 earnings conference call.
Morgan Stanley likes SanDisk shares here Morgan Stanley's NAND checks indicate supplier inventories are low and 1H 2015 pricing is holding up better than expected. Furthermore, contacts indicate Samsung's Galaxy S6 launch on Sunday will likely have upgraded NAND content of 32/64/128GB vs. the S5's 16/32GB. The firm believes the S6's content would absorb more bits in 1H than previously expected and help support NAND prices. The analyst reiterates SanDisk's Overweight rating and likes shares at these levels.
SanDisk calls active on renewed takeover chatter SanDisk February 81 and 83 calls are active on total call volume of 1500 contracts (600 puts) on renewed takeover chatter. February call option implied volatility is at 41, March and April is at 29, July is at 31; compared to its 26-week average of 32 according to Track Data. Active call volume suggests traders taking positions for large near term price movement.