I started from a great stock I own: STX. Seagate is an amazing company.
- Its revenue was up 56.80% year on year.
- Its earnings growth was stellar 751.30%.
- It is dirt cheap: they sell for price five times its earnings (P/E=4.77).
- Expectations for next year are better still P/E= 4.74.
- Dividend yields 4.1%, up 30% from previous year.
If Seagate is so wonderful and has numbers of the company everybody would like to own, why is it so dirt cheap?
Answering to that question tells me why Sandisk may be a great investment: Seagate’s job is to make hard disk, but hard disk are considered a technology of the present and past, while solid state disks (SSD) are a technology of the past.
Guess who makes solid state disks? Sandisk.
Guess who is selling solid state memory used in brand new Iphone 5? Sandisk.
Sandisk is also making memory cards that go into our camera. Sandisk is a new brand I didn’t even know two years ago. Sandisk is profittable now and can boon in the future. The market prices it very reasonably for a company that sells a technology of the future:
P/E: 16.62. It is expected to even improve:
Forward P/E: 14.17
That is why I did this transaction:
Date 09/26/2012
TSNDK Buy 35 SANDISK CORP
Price: $42.58
Total investmet: ($1,495.25)
BUY, SELL, KEEP 
Leave a comment