re SNDK:
It doesn't meet the portfolio criteria, based on:
Not a monopoly or duopoly.
Commodity industry.
Gross margins adequate, but nothing special.
From 2001 to 2006, their total shares increased a lot. Since then, their LT debt has increased a lot. So, for the last 10 years, they've required either more debt or more equity to finance their business.
Carries significant debt (LT debt = 1.7B$). Many of the names on the list have near-zero LT debt.
Compared to INTC, they have slightly lower valuation (PE 8 vs. 10, P/S 2.0 vs. 2.7). But INTC is a far safer investment (higher gross margins, steadily falling share count, much stronger moat, better balance sheet). On balance, I'd rather pay the slightly higher valuation for INTC, and get a lot more safety. And INTC is in NAND. |
