The WallStreetCity Select Fifteen For 2001
Lead analyst : Chris Connor
Contributing Analysts: Blair Jeffery, Don Diaz, Charles Rotblut
The Wall Street City Select Fifteen is a portfolio of stocks
that was built specifically to scorch the broader markets over
the next year. These stocks, which all have market-beating
potential, were selected by group consensus among the entire
team of Wall Street City analysts on the basis of business
models, underlying fundamentals, and technical strength. In
general, all of the stocks listed below represent companies
that are either current market leaders or are positioned to
capitalize on rapid growth in specific sector niches.
The portfolio was constructed with an investment horizon of
twelve months and does not involve the use of options or
other hedging instruments. Unlike last year's portfolios
(Aggressive and Select), diversification was a major factor in
determining the components of this year's portfolio because
of the adverse effect that a heavy dependence on technology
had on last year's portfolios. This year oil, drugs, and power
played significantly more prominent roles in the portfolio as a
result of the immense volatility in the technology sector. Also
unlike last year, there will be only one portfolio instead of
two, which has allowed us to put a more complete portfolio
together (i.e. conservative and speculative).
Company
Ticker
Industry
Comment
Sandisk
SNDK
Flash Memory
Leading Flash Memory
Provider
Qualcomm
QCOM
Wireless
Leader of
next-generation
wireless technology
Network
Appliance
NTAP
Network
Storage
Dominant leader of
NAS
Siebel Systems
SEBL
e-Business
The CRM Software
Gorilla
EMC
EMC
Network
Storage
Storage industry
juggernaut
Calpine
CPN
Power
Taking geothermal
power nationwide
Power-One
PWER
Power Chips
Not Your Father's
Power Company
Broadcom
BRCM
Broadband
Chips
Long Live the King of
Broadband
Map Info
MAPS
Mapping
Software
Mapping
Location-Based
Information Systems
Teekay Shipping
TK
Oil Transport
Compelling
Fundamentals and
Industry Conditions
Forest Labs
FRX
Drugs
Branding the
Prescription And OTC
Drug Market
Minimed
MNMD
Medical
Equipment
Putting the Blitz on
Diabetes
Nokia
NOK
Cell Phones
Still on Top of the
Wireless World
Handspring
HAND
Handheld
Computers
Eat your heart out
Palm
Art Technology
ARTG
Ecommerce
Software
Grabbing Market
Share With a Better
Platform.................................................SanDisk {SNDK} - Leading Flash Memory Provider
Chart
Quote
News
Quick
Facts
*Analyst
Report
One of the best kept secrets on Wall Street has to be
SanDisk Corporation, a leading provider of flash memory.
SanDisk produces flash memory which stores data for such
popular devices as Palm Pilots, wireless phones, and MP3
players. The advantages of flash memory are their small size,
their ease of removal, and their ability to retain data even
when its power source is turned off. More and more
companies are moving their products to the flash memory
system and SanDisk is definitely reaping the benefits of this
shift in production techniques. SanDisk holds the largest
market share in the industry for pure-play flash memory
makers and also boasts the industry's highest profit margin
assuring that these higher sales are translated into earnings at a
faster pace than the competition. Another major advantage
for SanDisk is that the company holds over 100 patents in
flash memory. Sandisk derives 12 to15 percent of its total
revenues from these royalties. These patents are also
important due to the barriers to entry they cause.
The year 2001 appears very bright for Sandisk with sales of
MP3 players, digital cameras, and PDAs at an all-time high.
Additionally, these products are ever evolving and have
caused SanDisk to ramp up its R&D effort to keep pace.
Despite this ramped up production and R&D, SanDisk has
been able to maintain its strong financial standing - a sign of
great management for the company. Earnings are slated to
grow at 21% in 2001 with expectations of 37% growth over
the next five years. This heavy expected growth is even more
remarkable when the stock's trading multiple is taken into
account. SanDisk trades with a 16.4 P/E ratio on EPS of
$3.68 and expected earnings of $1.24 in 2001, showing that
this future growth might not be priced into the stock fully at
this level. The stock has been beaten down lately due to
overall market conditions and the stock will certainly rebound
when the market begins to move higher. Once investors start
to feel more comfortable with the market environment,
SanDisk should more than reap the benefits. |
