Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

Patch- Surprise CSFB Humping SNDK Using Same "MON" Strategy

MON -"Must Own Now"- (we have stock to sell !)

(SNDK) Reit Outperform Why Own SanDisk? SanDisk is the leading designer, manufacturer and distributor of flash memory products for use in mobile consumer electronic devices such as cell phones and digital cameras. The company`s extensive intellectual property (IP) has provided a high-margin source of licensing revenues as well as allowed the company to become the cost leader. SanDisk`s strong brand and extensive distribution have led to an industry-topping 39% market share and has left the company well positioned to take advantage of continued explosive growth (40% CAGR) in mobile consumer electronics end-markets. Embedded in the $20 stock price are EBITDA margins and revenue growth both around 10%, which seems unreasonable given the growth for the last two years and historically high returns. We are initiating on SanDisk Corp. with an Outperform rating and a $35 price target.