Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: SBHX who wrote (17837)	12/30/2000 6:14:42 PM
From: puborectalis	Read Replies (2) \| Respond to of 60323

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.