SNDK........."Given Microsoft's intent and the battering some flash-memory players' stocks
have endured of late, one of the best buys right now is SanDisk (Nasdaq:
SNDK), with 40 percent of the flash-memory market. This company
manufactures removable flash cards for digital cameras, audio devices like
MP3 players, and digital camcorders. Growth in these markets has already
been strong: SanDisk's third-quarter revenue was up 153 percent
year-over-year, and it owns more than 100 patents, which it licenses to
competitors. The company is also an equal partner with Toshiba in a venture
called Flashvision, which, to meet growing demand, plans to transform a
Virginia foundry into one capable of generating $1 billion in annual sales by
2002, when it's expected to reach full production. It's slated to begin operation
in the second half of 2001. This ramp-up on the supply side, coupled with .Net
on the demand side, makes SanDisk a timely value, especially considering that
on December 14 its stock was trading at $54.06, 68 percent off its March high
of $169.63. At that price, SanDisk is valued at 35 times 2001 earnings
estimates, a reasonable multiple for a company expected to show 21 percent
earnings growth in 2001." |
