Forbes.com yesterday had this headline for one of its news stories: SanDisk Seen With 'Headline Risk'.
Headline Risk means that a company's share price is at risk due to the press release headlines of other companies. In this case, SanDisk is at risk because of these headlines:
- Apple Prepays $1.25B to Secure Flash Chips Through 2010
- Apple claims Flash memory supplies assured
- Apple seals five-year iPod memory deal
- Samsung, Hynix Confirm Chip Supply Deal With Apple
When you combine "Apple today announced that it has reached long-term supply agreements with Hynix, Intel, Micron, Samsung Electronics and Toshiba to secure the supply of NAND flash memory..."
with
"Apple crosses 30 million shipments of Apple iPod"
then it's bad news for SanDisk, because its name is missing from the headlines. (Right now, SanDisk is the largest supplier of flash memory in the world, and shares royalties wtih Toshiba from all other flash memory manufacturers.)
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