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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: hueyone who wrote (26650)6/22/2000 2:43:00 PM
From: Mike Buckley  Read Replies (1) of 54805
 
with SSTI breaking out to new highs at 114, it is still selling at 32 times calendar year 2001 earnings versus SNDK (at 74) selling at 59 times calendar year 2001 earnings. In addition, analysts are looking at calendar year EPS growth projections of 104% for SSTI versus 44% for SNDK. So with regard to near term projected earnings and near term projected growth rates, it can be argued that SSTI is a better buy.

Very often that sort of premium is given to a SanDisk because the market thinks that the company has better long-term prospects. Such a situation is important to note for the simple reason that the market rarely thinks long-term.

--Mike Buckley
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