Just now, SKHY from Hynix and SNDK from SanDisk surged sharply. Did you guys not react in time? The shorts must be buzzing in their heads. Don't worry, let's analyze it!
A violent rebound of nearly 10% within an hour! This round of storage stock rebound was directly catalyzed by SKHY.
The company plans to spend about 40 trillion KRW to repurchase and cancel approximately 24.07 million shares, accounting for about 3.3% of the total shares, and at the same time promises to use at least 50% of the cumulative free cash flow from 2025 to 2027 for shareholder returns.
SKHY dares to expand production while simultaneously deploying huge funds for buybacks, indicating that management believes HBM and DRAM can continue to generate cash flow.
In other words, the storage market is at least not as bad as the market previously feared, and funds then spread this logic to MU, WDC, and SNDK.
Next, we only look at the strength and weakness boundaries of the two stocks respectively:
SKHY targets $150.
If it holds and then retakes $165 to $170, the target is $180, then $190 to $195 previous highs; breaking below $149 to $150 means the buyback can only buffer the decline and is not enough to reverse market expectations.
SNDK targets $1650 and $1750.
Breaking through $1750 gives a chance to test $1800 to $1830; with volume and steady hold above $1830, the main uptrend is considered restored.
Conversely, breaking below $1650 indicates this rise is still more of an oversold rebound, and losing $1600 means a second pullback should be guarded against. $SNDK $SKHY
A violent rebound of nearly 10% within an hour! This round of storage stock rebound was directly catalyzed by SKHY.
The company plans to spend about 40 trillion KRW to repurchase and cancel approximately 24.07 million shares, accounting for about 3.3% of the total shares, and at the same time promises to use at least 50% of the cumulative free cash flow from 2025 to 2027 for shareholder returns.
SKHY dares to expand production while simultaneously deploying huge funds for buybacks, indicating that management believes HBM and DRAM can continue to generate cash flow.
In other words, the storage market is at least not as bad as the market previously feared, and funds then spread this logic to MU, WDC, and SNDK.
Next, we only look at the strength and weakness boundaries of the two stocks respectively:
SKHY targets $150.
If it holds and then retakes $165 to $170, the target is $180, then $190 to $195 previous highs; breaking below $149 to $150 means the buyback can only buffer the decline and is not enough to reverse market expectations.
SNDK targets $1650 and $1750.
Breaking through $1750 gives a chance to test $1800 to $1830; with volume and steady hold above $1830, the main uptrend is considered restored.
Conversely, breaking below $1650 indicates this rise is still more of an oversold rebound, and losing $1600 means a second pullback should be guarded against. $SNDK $SKHY