SanDisk traded at 20$ a year ago, then fell to 5$ and now is back and still rising. Shlomi Cohen sees a chip shortage, because of a sharp cut in investment. Instead of a disadvantage in its joint venture with Toshiba, he sees a very big advantage in production line ownership. A wave is beginning, of positive trends in the NAND market, one which will last at least two years. From the demand side, it originates in higher usage of mobile storage in telephones and media players, led by Apple. In the case that SanDisk will need more chips than it produces by itself, it will be able to buy them from Samsung, which in its new royalties agreement committed to sell to it at low prices.
Shlomi recommends SanDisk as a BUY.
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