SanDisk and the iPhone

During the last half year and especially the last month SanDisk’s stock has had a remarkable relative strength compared to the whole market.

This maker of flash memory is one beneficiary of the strong trend towards smart phones and tablet computers. Right now its chart has also the promising pattern of a restart in a longer trend.

However, there is a big caveat with this stock. As the long term chart reveals, SanDisk has a highly cyclical product, memory chips, which is probably the mother of all cycles. It remains to be seen whether this stock will be able to convert its cycling nature into a secularly trending growth monster, at least for some time.