HOLD SNDK (SANDISK) LONG POSITION
After the close, Samsung announced $26 cash bid for SNDK. The offer is not contingent on financing. We believe there is a distinct possibility of a competing bod from Toshiba. On the other hand there is some antitrust risk in Samsung bid. On balance, we believe it is advantageous to hold the long position.In our last post we suggested selling 75% of long position to lock in profits per our methodology. If you followed our methodology, during the recent pullback you have added to SNDK position in $14 range. On the other hand, some stops should have hit. On balance,