Seeking Alpha

SanDisk rallies as Street praises investor day; Micron also gains

  • "The 3D NAND industry cycle will be longer than historical patterns and SanDisk (SNDK +3.7%) has a longer-term mix shift toward higher value enterprise SSDs and 2D NAND cost advantages," writes Raymond James while upgrading the NAND flash giant to Strong Buy.
  • Nomura has upped SanDisk to Neutral and hiked its 2014/2015 estimates. The firm is still worried about the NAND pricing/margin gap that exists between SanDisk and rivals, it thinks "the risks of an earnings miss in 2H14 have declined" amid seasonal improvements and slowing industry supply growth.
  • In its investor day slides (.pdf), SanDisk forecasts annual NAND flash industry bit growth will be in a modest 30%-40% range going forward. The company also noted its client SSD sales tripled in 2013 to $922M - SanDisk claims to be the market's #2 vendor. Enterprise sales almost doubled in 2013 to $267M; SanDisk is aiming for over $1B in 2016 enterprise sales.
  • Of interest to Seagate (STX +1%) and Western Digital (WDC +1.7%) investors: SanDisk predicts the SSD attach rate for business notebooks will grow to 39% in 2017 from 16% in 2013, and that the rate for consumer notebooks will grow to 21% from 10%. The hard drive industry is already expected to see limited growth due to SSD pressure.
  • Both SanDisk and NAND rival Micron (MU +3.3%) have made fresh 52-week highs. Micron rallied last week following a report the company is set to hike DRAM prices.
  • Yesterday: SanDisk hiking dividend to $0.30/share
From other sites
Comments (2)
  • the_value_vulture
    , contributor
    Comments (224) | Send Message
     
    Great gains on micron since the earnings report. While micron may have a ways to go, all the while imos is being completely ignored in the run up. The memory business is chipmo's business. Jared said it best...

     

    "Behind almost every good semiconductor company is an unknown back-end that does the hard work without getting the notoriety. "

     

    This hard working company is being severely undervalued for all the business they are likely acquiring as memory margin swells and the continued boom in pricing and quantity.
    8 May 2014, 01:08 PM Reply Like
  • thejacadagroup
    , contributor
    Comments (71) | Send Message
     
    P/E plus free cash flow plus real products for real uses that keep growing make MU the stock to be in now through year end.....
    9 May 2014, 07:42 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs