SanDisk Corp. (SNDK)

[chmcnfunds]

4 Mid-Cap Tech Stocks To Buy In 2012, 1 To Avoid
December 30, 2011

The following is a list of 4 midcap technology stocks which are likely to show good stock price appreciation in 2012:

Sandisk (SNDK): SanDisk Corporation is engaged in designing, developing and manufacturing data storage solutions in a range of form factors using the flash memory, controller and firmware technologies. The Company’s products are used in a range of consumer electronics devices, such as mobile phones, tablets, eReaders, global positioning system devices, gaming systems, imaging devices and computing platforms. Sandisk’s EPS forecast for the current year is $4.59 and next year is $5.07. According to the consensus estimates, its top line is expected to grow 17.30% next year.

In the near term, SanDisk is likely to benefit from an improved product mix as solid state drive adoption in PCs is accelerating due to the expected hard disk drive shortage caused by Thai floods. While the Thailand floods have negatively affected DRAM and PC, they are a net positive for the NAND market.

In the medium term SanDisk’s exposure to high growth NAND Flash market and increasing competitive barrier to entry in the NAND market are likely to bode well for SanDisk. Unlike DRAM, NAND is no longer a commodity business. Technical issues create huge variations in performance between solutions and higher performance solutions enabled by advanced controllers command high premiums.

SanDisk is financially strong with ~$2.5bn or $10/share in short term cash and $2.7bn or $11/share in long term investments offset by $1.6bn or $6.50/share in long term debt. Adjusted for cash Sandisk is trading at less than 6x FY12 earnings which is attractive given its leadership position in the industry.
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http://seekingalpha.com/article/316690-4-mid-cap-tech-stocks-to-buy-in-2012-1-to-avoid

SNDK