SanDisk Corp (NASDAQ:SNDK)

SanDisk, was founded in 1988 by Dr. Eli Harari who is still chairman of the board and CEO. The company manufactures and distributes NAND (flash memory) chip based products such as flash cards, USB drives, and solid state drives. In addition, SanDisk receives royalty revenue from various NAND chipmakers and OEMs such as Samsung. SanDisk has a joint venture NAND chip fabrication with Toshiba in Japan. SanDisk is the best in the memory chip sector. Valuation is great, esp. after the sell-off. Margins are huge and the prospects for the second half of 2012 are marvelous. The balance sheet is strong, with 4 billion (1/3 of its market cap) net cash. Botom line: the growing tablet market needs flash drives.

The IDC, a well known and respected research company, is predicting that the smart phone market will increase from 166 million phones sold to over 1 billion sold in 2015. Sandisk is heavily involved in the NOR, NAND, and SSD semiconductor equipment all these phones use, so I'm bullish on SNDK. It should continue to take some market share away from the other semiconductor companies, which will increase its growth even more. Even if the IDC is wrong, it can't be denied that the smart phone market is rapidly growing, just look at AAPL and GOOG with their iOS and Andriod phones. The smart phone market is shooting up, and this company is a great way to get exposure to it. On the technical side, it has a PE of 10.2 compared to an industry average of 12.8. Plus, as consumer spending increases, so will demand for their flash drives, another area for growth. And with China slated to overtake the US next year in PC sales, all those middle class Chinese PC owners will need flash drives.

There will be ever increasing demand for flash drives and flash memory used in smart phones, tablet computers, digital media players, etc. Sandisk is a leader in flash memory storage systems.

No idea why I haven't recommended this before now, but with an 11x FCF valuation and 17% growth, there's no time like the present to buy SanDisk.

Super.

good fundamentals, lets see

tort screen

The cheap way of getting into Apple. Even at current price, with such a low P/E and good growth prospects, it's a great deal.

Floods in Thailand will hurt HDD supply, SDD will be a more attractive attactive option

makes usb cards. my player liked it . leading sector. PE was 8.7.

It might have a little rough time in short time during the PC -> tablet memory transition.

The two big growth markets in consumer electronics are smartphones and tablets. Both are built on flash memory. A major trend in PCs is toward ultra-thin designs, like Apple's (AAPL) Macbook Air. Those designs depend on flash memory (not hard drives) for storage. SSD flash drives are an important part of data center design due to their speed and low power requirements. SanDisk is the purest play in flash memory. Revenues are growing at near 20% annual rates, and margins have improved sustainably due to a shift into product-embedded flash rather than consumer SD cards. So why is this cyclical stock selling at historically low price-to-sales multiples? It doesn't add up.

Far too cheap, growth in tablets, growth in new markets, price stabilization for flash memory.

Dominant player in many areas; SSD exposure particularly exciting.

Storage is shifting to SSD, SNDK leads this pack.

Medium-term demand for SSD's to replace spinning hard disks. Long-term, however, cloud storage may dent consumer demand for local storage considerably.

A P/E of 8 with 2012 earnings growth of 10% gives Sandisk a PEG ratio of .8. Thats cheap.

Looks cheap to me.

there will be short supply of flash in the market