SNDK & CAT, RSH and oil, and IO

SNDK dropped 20% on downgrades. Apparently prices are falling and margins are getting hit.
I haven't looked at the fundamentals in a while, but I will now that they got hit. They may be a buy again. Memory in general is selling strong (DRAM memory made Samsung successful this quarter).

I wonder if the slowdown in iPod unit growth is somewhat responsible. Most of the iPods being sold are flash memory based. That and the delay of Sony's Playstation release. Also, cell phones not driving to new features demanding more flash.

I believe in Flash memory and Sandisk not only has a strong brand name, they have a strong position having bought the competition. But that is something of concern - prices should not be dropping when you have a tight handle on supply.
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CAT sent shockwaves through the market today. They see slowdown. Mining companies got hit especially hard. This is very, very important, but not unexpected. I think I got lucky on my JLG shares getting bought out. Timing is everything.

This is confirmation that the economic growth is winding down.
Also, I doubt that CAT is going to tender a JLG bid, so lets sell on an up day.

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RSH downgraded by Jefferies to underperform. Basically, they are discounting the buyout rumors and saying the company is just not doing well. Ummm, tell us something we don't know.

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Oil supply will be cut by 1.2m BPD, a bit more than the expected 1 m BPD, an dthreat sto cut a further 500k BPD.

There is a message being delivered. First, by going deeper, OPEC is saying that they are determined to get oil above $60 an dthat they have the will to do so.
The audience is anyone trading in oil futures. OPEC strongly believes that oil prices are very manipulated in the open market by oil speculators. These are friends when they push the prices up, and enemies when the prices drop.
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IO is a company I've been watching for almost a year. They do seismic testing for oil, and are apparently hugely in the technical lead especially with marine studying. You may recall that most exploration is focused on offshore exploration and drilling (avoids countries with strange politics, onshore oil well known at this date).

Remember, this is a short term play measured in weeks and months. Over the next few weeks, winter will start and fuel demand surges. Happens every year. Fuel inventories will shrink.

The impact on oil equipment companies is meaningless. Non-OPEC countries need to drill and find oil. As do companies like BP and Exxon.