SanDisk (SNDK) Shares Up Today as Barron's Details Strong Growth Areas (HPQ, SNE)
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Shares of SanDisk (Nasdaq: SNDK) are trading higher today as Barron's details on how the company is benefiting from the rapid sales of Apple's (Nasdaq: AAPL) iPad device. Shares of the company are up 6% to $47.27 in the early morning session.
SNDK makes the flash memory used in the iPad tablet, and Apple CEO Steve Jobs says that the device is selling at a rate of one every three seconds. Morgan Stanley increased their units sold estimate from 6 million units to 10 million units by the end of 2010.
Barron's notes that SNDK's flash memory is used in devices as diverse as digital cameras, GPS devices, and smartphones.
SNDK's CFO, Judy Bruner, said that their quickest-growing segment is the mobile-handset market, but the company is looking to utilize their devices in laptop computers as well, which will allow for faster boot-up times and cooler running temperatures.
The company is expected to have an EPS of $3.71 this year, double the profits of FY09.
Because of the foresight of founder and CEO Eli Harari regarding the marriage of cameras and cell phones, SNDK got a jump on the market in creating expandable memory cards for those devices, and now draw about half of their revenue from the mobile-device market.
With the success of the iPad device, however, other major manufacturers like Hewlett-Packard (NYSE: HPQ), Sony (NYSE: SNE), and Asustek Computer will begin rolling out their own version of a tablet device, which will most assuredly incorporate the ability of flash memory expansion.
The replacement of standard hard drives with solid-state drives (SSD) in laptops will also be key for the company. SSDs use less space and power, while allowing a quicker boot-up of computers. One of the major constraints, as of right now, is the cost of the technology. Currently priced at $1.90 per gigabyte, the prices appear to be falling at $0.50 per yeat, according to one analyst at Broadpoint AmTech.
CFO Judy Bruner said that if SSD were to penetrate just 20% of the market, then "that's a very big potential growth-driver for flash."
SNDK makes the flash memory used in the iPad tablet, and Apple CEO Steve Jobs says that the device is selling at a rate of one every three seconds. Morgan Stanley increased their units sold estimate from 6 million units to 10 million units by the end of 2010.
Barron's notes that SNDK's flash memory is used in devices as diverse as digital cameras, GPS devices, and smartphones.
SNDK's CFO, Judy Bruner, said that their quickest-growing segment is the mobile-handset market, but the company is looking to utilize their devices in laptop computers as well, which will allow for faster boot-up times and cooler running temperatures.
The company is expected to have an EPS of $3.71 this year, double the profits of FY09.
Because of the foresight of founder and CEO Eli Harari regarding the marriage of cameras and cell phones, SNDK got a jump on the market in creating expandable memory cards for those devices, and now draw about half of their revenue from the mobile-device market.
With the success of the iPad device, however, other major manufacturers like Hewlett-Packard (NYSE: HPQ), Sony (NYSE: SNE), and Asustek Computer will begin rolling out their own version of a tablet device, which will most assuredly incorporate the ability of flash memory expansion.
The replacement of standard hard drives with solid-state drives (SSD) in laptops will also be key for the company. SSDs use less space and power, while allowing a quicker boot-up of computers. One of the major constraints, as of right now, is the cost of the technology. Currently priced at $1.90 per gigabyte, the prices appear to be falling at $0.50 per yeat, according to one analyst at Broadpoint AmTech.
CFO Judy Bruner said that if SSD were to penetrate just 20% of the market, then "that's a very big potential growth-driver for flash."
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