Storage concept stocks collectively decline SanDisk(SNDK.US) drops nearly 5%

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On Thursday, storage concept stocks fell collectively. SanDisk ( SNDK.US ) dropped by nearly 5%, Micron Technology ( MU.US ) fell by more than 4%, and Seagate Technology ( STX.US ) and Western Digital ( WDC.US ) both fell by more than 3%. On the news front, the recent move by “Wall Street big short” firm Citron Capital targeting SanDisk has “doused a bucket of cold water” on the currently feverish storage chip industry. Citron’s attack on SanDisk is a reassertion of the prevailing “storage super cycle” logic in the market. The short-selling firm did not hide its view that the market’s pricing approach to SanDisk contains fundamental errors, and that the current tight supply of storage chips is merely a “mirage,” with the top of the cycle already close at hand. Citron’s short report has triggered renewed doubts about the “storage super cycle” and brought significant short-term volatility to related stocks.

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