Flash Memory Stocks Update (FLSH, SNDK, SPSN, SFUN)


Some news of interest in the flash memory sector:

FLSH: Daniel Amir from WR Hambrecht notes that M-System's memory is in the new 3G Motorola RAZR, according to FCC documents:

We believe the significance of this release is the following: 1) it proves that the MDOC is designed into high volume unit phones as they hit the feature phone market; 2) we verified that this phone has already begun shipping in Europe at Vodafone and that we could see Cingular releasing this phone in Q1 in the U.S.; 3) with this design win, we believe that M-Systems is likely to be in the next generation RAZR, which could result in millions of MDOC units sold in 2006 on the heels of the successful release of the current version of the RAZR... We are reiterating our Buy rating and $38 price target on FLSH shares.

Also, M-Systems and Toshiba just announced a new embedded flash joint venture for mobile handsets.

SNDK: A positive Supreme Court ruling today, denying Ritek, Memorex and Pretec Electronics Corp.'s petition aimed at reversing a July federal appeals court judgment that reinstated SanDisk's infringement suit; also, an article in the NY Times on the battle between SNDK/Toshiba and Samsung for the upper hand in the raw NAND production market.

SPSN: Look out for the IPO of Spansion this week. The flash memory chip maker, 60% owned by Advanced Micro Devices (ticker: AMD), will sell 39.2 million shares at $16-$18 each in a bid to raise more than $700 million. The company will trade on the Nasdaq under the ticker symbol SPSN, and shares are planned to made available to the public on Thursday.

SFUN: The action in Saifun has been interesting since its IPO one month ago. The flash memory company's stock rocketed up almost 50% on the first day of trading, but has since fallen back about 17%. Here's an overview we put up on Saifun's technology.

Full disclosure: Editor is long shares of FLSH at the time of this posting.