Hi R.edwards, latest money magazine (page 84) on Sandisk...
STOCKS TO WATCH IN THE POST-PC ERA
THESE COMPANIES WILL BENEFIT FROM THE RISE OF INTERNET COMPUTING
WINNERS TO BUY NOW...
Sandisk, Smartdisk
These are the raciest picks of the bunch - smaller but faster growing business with the opportunity for big upside moves as well as the peril of a painful collapse if they falter. We started by looking at memory makers that would benefit from the boom in Internet appliances. The big opportunity: makers of flash memory. In a Web-browsing device, flash memory taks the place of the disk drive, essentially letting you read, write and store data on a rugged, low-powered component the size of a stamp. And unlike other forms of memory, such as DRAM or SRAM, data aren't erased when the machine is turned off. The market leader in flash memory, with a third of the market's share, according to IDC: SANDISK. The company is expected to pull in $500 million in sales (twice 1999's $247 million) & earn 80 cents a share this year, an 84% jump in earnings from 1999. The only problem: Sandisk is hardly a secret. Although it is exptected to grow earnings at a 30% annual clip over the next few years, its shares currently trade for an astronomical 181 times expected earnings and 16 times sales. Clearly, not one for the faint of heart. Nonetheless, Jeff Wrona, management of the PBHG Tech fund calls Sandisk one of his favorites.
Side Note: Looks like share price was $145.00 at time of article. |
