Oops: Misunderstanding M-Systems x4 creates Buy opportunity for Saifun
14.5.06 | 15:13 By TheMarker
Investors mistakenly sent Saifun Semiconductors (Nasdaq:SFUN) stock reeling after misunderstanding M-Systems (Nasdaq:FLSH) announcement of breakthrough quad-bit technology, suggest WR Hambrecht analysts Daniel Amir and Betsy van Hees.
They thought the 4-bit per cell NAND flash technology that M-Systems unveiled at its analysts day would compete with Saifun's Quad-NROM. No no no.
"Overall, while we are impressed with the M-Systems x4 technology and believe it could have a profound impact on M-Systems, it does not compete with NROM," they write. Actually, the two technologies could complement one another.
In short, the dip in the Saifun stock created an opportunity to get in, they advise.
Then they counted the ways they like Saifun, one being its winning business model, another being a strong customer base, and a third being technological leadership in its niche.
4x is a new technology but it's still NAND, the two explain, adding, "NROM value proposition remains in place." No, x4 can't replace NROM for all its four-bit architecture. http://www.haaretz.com/hasen/spages/715745.html