Fusion-io, Inc. (NYSE:FIO)

Watch the volatility on this. $15 was a good price to get in. Take 75% out around $25-30

This leading innovative flash-storage memory technology company's growth is likely only deferred in the short-term due to 6 month delays in orders from two of its largest customers -- Apple and Facebook. Significant growth should resume in the second half of the calendar year since revenue from the deferred orders of these two behemoths is expected to return.

"... The company is getting by with a little help from its friends. Leading system builders Hewlett-Packard (HPQ), Dell (DELL), and IBM (IBM) all bundle Fusion-io storage systems with their own servers and bulk storage units. All three tested and then launched new Fusion-io products this summer. And it doesn't stop there: Fusion-io added server upstart, networking giant, Cisco Systems (CSCO) to its roster in June. Any system builder worth mentioning is now aboard the Fusion-io bandwagon. Revenue from the company's "core customers" more than doubled this year, and the two largest partners represented 55% of Fusion-io's total sales. ..."
*quote source:
fool.com/investing/general/2012/08/10/boom-and-this-is-just-the-beginning.aspx

Why is the short interest so high?
Is it because the company is enabled by a specific implementation of SSD technology which could be copied?
Though, if that is the case, why is it that: "Any system builder worth mentioning is now aboard the Fusion-io bandwagon." ?
1) Perhaps in the case of FIO's customers there's much to gain in the short-term from specialization and the "division of labor."
- How will that play out in the long-term?
- Is FIO going to be acquired?
- Does it want to be acquired?
2) Notably, to my best knowledge, AMZN is not a customer.

SDD market growth

http://seekingalpha.com/article/1054551-modeling-out-the-future-in-fusion-io

More data shifting to server farms, more need for the farms to run faster. Long term trend in favor of FIO.

Facebook Q3 2012 earning will rock. I just hope the guys will invest all their cash in some related stocks.

Fusion-io uses solid-state memory to help servers run more efficiently and effectively. There are lots of servers out there that could use a boost, as well as new ones that will come online. Major customers include Facebook and Apple for their internal networks.

Motley owns butpricer

customers Apple &Cisco TTM gross profit $200 M TTM net income($6 M) TTM cash flow $11 M expected results Up coming Q Gross Margin 56 to 58% operating margin 10% Gross Margin 56% to 58% operating Margin 12%. UpcomingYr. $539 M 2013 fiscal capital expenditure $20 M

Move away from traditional storage media to solid state devices.

is a buyout candidate after texas memory buyout. hot technology. over 33 million servers world wide will need upgrade.

http://www.fool.com/investing/general/2012/08/10/boom-and-this-is-just-the-beginning.aspx

The company plays an increasingly important role in the big-data trend and should be able to climb dramatically from here. In fact, I'm so convinced of a bright future for this stock that I just opened a bullish CAPScall on Fusion-io -- today's price jump notwithstanding. Fools don't play the market-timing game, you know.

FIO still looks expensive - even after falling so far since its IPO. But I think this is as cheap as it's going to be for awhile.

SSD tech for large servers. Will soar or be acquired IMHO.

While this is not a certainty by any means... the technology that supports virtualization and server-based web applications is clearly in the future. FIO appears to be in a good spot. But there is significant competition and the market is VERY price sensitive. If they can make products that are a "good" value and afford to sell them and make a profit this company is positioned too do very well. There are alternative storage strategies and some are very low cost. But, I think in the near term this stock will out perform... so I put some money where my mouth is and bought 200 shares. Well, see.

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?

People keep comparing this company to "competitors" that don't make sense. I guess that's understandable since they're the ONLY serious player in performance enterprise storage.

High Growth

Memory is key.