Saturday, July 01, 2006

Is Flash Memory A Buy? (SNDK) , (MU)

Hard drives are still the cheapest form of storage and they will still be used in DVR's and desktop computers for many years. There is no question that flash memory is the future of storage. Everybody wants thin laptops, mp3 players, digital cameras cell phones, and PDA's. Flash memory is the only way to have thin and durable devices.

Currently the largest flash based mp3 player is the 6 GB e270 made by Sandisk. The e270 competes directly with the 4 GB iPod Nano. If report(s) are true Sandisk will have an 8 GB player soon. I am sure Apple will come out with an even larger flash based mp3 player. There are reports that the price of flash memory is recovering and that Apple is buying all they can get their hands on.

"Gartner Research expects Apple to introduce by the fourth quarter a new, high-end NAND flash-based iPod with 10 to 12 gigabytes (GB) of storage capacity and a price point of about $250." (

Apple still needs to buy the NAND Flash memory from companies like Sandisk (SNDK) and Micron (MU). I think Sandisk (SNDK) is a compelling buy down almost 30 points from its 52-week high.

NOTE: I currently have no position in SNDK or MU. Soon to be long SNDK.

New iPods Will Spur 2H06 Recovery in NAND Flash
Strong iPod sales to drive NAND growth, Gartner says


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