Fusion-io, Inc. (NYSE:FIO)

arembr01 (34.16) Submitted: 6/21/2012 1:07:39 AM : Start Price: $19.09 FIO Score: -55.80

In my opinion there are quite a few things to be excited about with this company and it’s growth potential. First, the customer connections: Largest customer is Facebook, Apple is on their heals with their iCloud and laptops and could end up taking over the top spot soon. New deal with Cisco to be placed in their blade servers, Dell, ect, ect. These are all huge companies, who don’t appear to have a risk of going out of business that would place huge orders with FIO.

For those of you who have used a flash hard drive, you know the huge difference in speed and the durability as well. No more bad hard drive because you set your laptop down a little too hard. Personal computers are going toward the direction of flash drives. Despite how anyone might feel, cloud computing is the future for personal and business computing. Presently, these markets are extremely untapped, AKA HUGE growth potential.

But what good is growth potential if you can’t capitalize on it? Well….. guess who just happens to have a 57.38 gross margin? To put it a different way, lots of room to invest in R&D, expand capabilities and the ability to fully exploit growth opportunities.

Lastly, while being expensive isn’t exactly a good thing, it sure isn’t bad sign with regard to FIO. Yes, they sport a 852 P/E, but that price tag is reflective of expected earnings growth potential. Since their IPO last year their stock price has dropped, however their customer base has grown and will soon be generating much more income. This current low stock price is a great chance to get in at a much more attractive position than you will see later this year.

Of course there is a chance you dive into this, I’m totally wrong and it all goes bust. In which case, why did you take the advice of a random stranger on the internet, LOL?