Sajal

Contrarian Pick: Flash Memory Vendors

Antoine Gerard: Thanks for the link.

I agree timing the business cycle is a difficult exercise. But I can say with certainty that two years from now most of these companies would be trading at higher valuations. MU for instance.. I see a downside of say 5, and an upside of 15+.. that's an attractive risk-reward tradeoff.

RB9652: That's an interesting trade. Except STX and WDC trade
at really low multiples. Mr. Market may be pricing a bit of that already.
Also, there's nothing stopping STX from getting into the SSD business. I believe STX has a fair amount of patents in the drive industry which they intend to use aggressively.
Refer to
arstechnica.com/news.a...
and
arstechnica.com/news.a...

omitsure, I think you'll find that with M&A activity, more companies would be collaborating on the R&D expenses in developing newer process fabs. It's already happening on the PC side with the IBM led consortium. Mergers are the only way to reduce supply and increase pricing power.