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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (119264)	12/15/2000 11:26:42 PM
From: puborectalis	Read Replies (1) \| Respond to of 120523

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."