Overselling SanDisk and iRobot on a Bullish Day

Both SanDisk (NASDAQ:SNDK) and iRobot Corp. (NASDAQ:IRBT) were thrown under the bus this morning after disappointing investors with Q2 earnings yet still managing to beat the Street and hold steady going forward in 2009.  iRobot shares got down to $11.01 before jumping back to $11.60 and SanDisk hit $16.21 before recovering to $16.66, so are traders expecting too much on such an upbeat day?  This may be an opportunity for what the Masters call -- IN-N-OUT INVESTING.

Fun graphic huh?  Here it is again without the Masters logo, again, these days its all about IN and OUT INVESTING where timing is everything.

SANDISK RESULTS

SanDisk Corporation (NASDAQ:SNDK) reported Q2 EPS of $0.36, ex-items, beating consensus analyst estimates for a loss of $0.16. Revenues for the quarter fell 10.5% year-over-year to $730.6 million, beating consensus estimates of $709.7 million. Chairman and CEO Eli Harari said:

"We are very pleased with our return to profitability in the second quarter, driven by increased pricing, higher royalty revenue, and strong execution. Our decisive and timely restructuring actions are delivering the intended results . . In the second quarter we renewed our patent cross license agreement with Samsung Electronics, providing market certainty. We remain cautiously optimistic about the second half of 2009."

The company's average gigabyte sold increased 118% year-over-year while the average price per gigabyte fell 59%.

IROBOT RESULTS

iRobot Corp. (Nasdaq: IRBT) reported Q2 loss of $0.10, 1 cent better than the analyst estimate of ($0.11). Revenue for the quarter was $61.3 million, versus the consensus of $59.29 million.

IRBT Reaffirmed their Q3 forecast: revs of $75-$80 million, versus the consensus of $87.1 million and EPS of $0.00-$0.03, versus the consensus of $0.07.

Narrows FY09 revs range to $295-$305 million, versus the consensus of $299 million and EPS of $0.00-$0.04, versus the Street estimate of $0.03.

LET'S FACE IT, IT COULD BE MUCH WORSE

Fellow Masters, both iRobot and SanDisk are good companies and on a day where everything is up, this is why we are checking the trash for opportunities to buy while the stock is down and avoid the falling knives.  Both IRBT and SNDK could go lower but with a 10%+ move to the downside and a half-way decent Q2 result with expectations for revenue to improve going forward, what more do you need?

sources: http://www.mysmartrend.com/briefs.asp?n=Stock%20News&date=07222009&h=Sandisk%20Beats%20Estimates%20Remains%20Cautiously&storytype=nw&storyid=12059

http://www.streetinsider.com/Earnings/iRobot+%28IRBT%29+Reports+Q2+Loss+of+$0.10,+Beats+by+1c%3B+Reaffirms+Q3,+Narrows+FY09+Outlook/4812113.html