Mike W., just got the text of the article. Check it out. Real positive:
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Thursday January 22, 11:04 am Eastern Time
Company Press Release
SOURCE: BancAmerica Robertson Stephens
BancAmerica Robertson Stephens Initiates Coverage of SanDisk
Corporation
SAN FRANCISCO, Jan. 22 /PRNewswire/ -- BancAmerica Robertson Stephens research analyst John Rossi initiated
coverage today on SanDisk Corporation (Nasdaq: SNDK - news) with a Long-Term Attractive rating; bullish outlook for the
second half of 1998.
SanDisk is the leader in flash-memory applications, with a 32% share of the flash-memory market, which accounted for $240
million in sales in 1996 and which is forecast to grow to $1.7 billion in 2000. SanDisk has set the standards for CompactFlash,
the industry standard for digital film, FlashDisk, the industry standard for PC flash-memory, and MultiMediaCard, the industry
standard for cellular phone memory. The company has a war chest of 72 U.S. patents and patents pending and 31 foreign
patents and patents pending covering key elements of flash memory technology. The patent portfolio generates high-margin
royalty revenue that accounts for about 15% of total sales.
SanDisk does business with an impressive network of partners: Motorola (MOT $57 13/16), Matsushita, LG Semi, NEC, and
UMC build SanDisk's chips, Intel (INTC $76 11/16). Toshiba, Hitachi, Samsung, and Sharp pay SanDisk license royalties;
and, among others, Kodak (EK $60 5/16), Canon, Hewlett-Packard (HWP $63 1/16), Cisco (CSCO $59 5/16), Siemens,
Nokia (NOK'A $75 1/8) and Casio buy SanDisk's products.
''We believe that the high growth potential of razor-blade-style sales into the PC, PDA, digital camera, and cellular markets,
along with hefty contributions from royalty revenue, can give SanDisk 20% operating margins and 25-30% growth in sales over
the next three years,'' said Rossi.
''We view SanDisk as a franchise intelligent-systems company with a defensible market position worthy of a price/earnings
multiple at the upper end of the 18-30 range that usually prevails for the intelligent-systems group,'' said Rossi.
The EPS estimates for 1998 and 1999 are $0.85 and $1.05, respectively.
BancAmerica Robertson Stephens is a leading international investment banking firm focused on emerging growth companies.
The firm's 47 senior research analysts cover over 500 companies.
The information contained herein is not a complete analysis of every material fact respecting any company, industry or security.
Although opinions and estimates expressed herein reflect the current judgment of the Firm, the information upon which such
opinions and estimates are based is not necessarily updated on a regular basis; when they are, the date of the change in estimate
will be noted. In addition, opinions and estimates are subject to change without notice. This Report contains forward-looking
statements, which involve risks and uncertainties. The Company's actual results may differ significantly from the results
described in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, those
discussed in ''Investment Risks.'' BancAmerica Robertson Stephens from time to time performs corporate finance services for
some companies described herein and may occasionally possess material, nonpublic information regarding such companies.
This information is not used in the preparation of the opinions and estimates herein. Facts and other information discussed have
been obtained from sources considered reliable but are not guaranteed. BancAmerica Robertson Stephens, its managing
directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make
purchases or sales while this report is in circulation. BA Robertson Stephens International Limited is regulated by the Securities
and Futures Authority in the United Kingdom. This publication is not meant for private customers. The securities discussed
herein are not FDIC insured, are not deposits or other obligations or guarantees of Bank of America NTSA, and are subject to
investment risk, including possible loss of any principal amount invested. >
I like it, I like it!!
Mike G. |
