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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: SI User who wrote (39984)	8/26/2008 1:56:47 PM
From: The Ox	Read Replies (1) \| Respond to of 95615

SNDK has been making money and MU hasn't made money in years! That's the main reason why SNDK is 3 times the price per share vs. MU. Add that MU's losses in the past few quarters have totally wiped out any net income gains they've had in the previous 3 years. Whether this trend will continue is the $64 question. SNDK revs are about 1/2 that of MU. However, with the exception of the last quarter, SNDK had been generating net income where as MU hasn't done so in a very long time! Estimates have plunged for both companies and analysts have significantly lowered price targets for both. SNDK had been growing revenues substantially over the past 3 years... until this year. I believe the previous growth rate was 30%+ per year. MU had a much lower growth rate, roughly 10% per year. You may be right that SNDK's numbers no longer support the price difference vs. MU. The long term growth rates for both companies are down in the low teens, so the ability to generate net income should be the difference maker. The average analyst is still predicting that SNDK will make money next FY and that MU will not. The analysts are all over the map as there is a 48% difference in revenue targets for SNDK and a 30% difference for MU. Clearly, even the analysts don't have a solid consensus as to what will transpire over the next year or so. Don't know if this helps at all.... fwiw...jmo TO