Monday, April 20, 2009

Flash, Sandisk

---> 5 year chart of flash memory manufacturer SanDisk, which Samsung almost bought last year but didn't, which was a good miss. The deal could have happened around $26, then maybe a little lower.

In previewing Samsung's March quarter, which will be reported this week, a major Wall Street firm is out saying aggressively that the semiconductor memory market has bottomed and that in the ensuing rebound, flash has the most upside potential.

is the best pure play if you're inclined to agree. In addition to being manufacturers they have a large IP portfolio which generates a large royalty revenue stream. I think this call works at some point between now and Christmas, even without a takeover. If Samsung says something positive about flash inventories/supply/pricing, SanDisk will work sooner rather than later.

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