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Contributors: Douglas McIntyre Jon C. Ogg

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Monday, July 10, 2006

Most Widely Traded 48 Hour Clock: SanDisk Continues Lower

24/7 Wall St. has begun coverage of the 36 most widely traded stocks, eighteen each from the NYSE and the NASDAQ. Most of these stocks trade over 50 million shares a week. This new feature will highlight each of the 36 stocks at least every 48 hours giving investors fresh infomation and perspective on the companies whose shares are most likely to move the broader markets.

Stock Tickers: SNDK, EMC, MMM, AMD, INTC

Just a few months ago, a company announcing it had a supply pact for potentially millions of Skype users would have brought on a rally cry. If you look at SanDisk (SNDK) today you will see confirmation that no one seems to care. Semiconductors have been a dismal performer in general, and flash memory hasn't offered much protection.

EMC (EMC) gave an earnings and revenue warning from storage operations, bringing it down another 4% while it has been trying to get up off the mat. That gave an excure for additional tech selling after 3M (MMM) was creamed Friday over weak sales in its LCD operations. Even AMD (AMD) isn't immune after its warning last week as Intel (INTC) fights it with faster roll-outs and price cuts; AMD is down 2.6% today to $22.93.

Weak chip, weak LCD sales, weak storage, weak PC's, weak driver sales......Do you see a pattern? It looks like the street is treating flash memory in the same light.

SNDK has already traded its average daily volume and its shares are trading down 5.01% at $44.92. It was also trading at $51.00 just last Monday and has drifted gradually lower and lower since then. Bear Stearns had tried defending its Outperform rating just at the end of last week, so look to see if others make the same attempts. It is not scheduled to report earnings until July 24 (estimates $0.45 EPS and $695+M in revenues), but it is getting obvious that the street is getting nervous ahead of the report.

Jon C. Ogg
July 10, 2006
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