Who doesn’t want a piece of Apple’s pie? We spoke with one company who’s looking to carve itself a healthy slice, in a flash!
Sandisk Corp. (SNDK) co-founder, president & COO Sanjay Mehrotra joins the panel for this conversation. Following are excerpts.
You’re a maker of flash memory which is highly desirable. Yet your stock is down. Why?
“Last Thursday we announced a very strong third quarter," says Mehrotra. “The demand drivers for our business really look pretty strong… and mobile phone (business) is one of the strongest growth markets for us.”
Why doesn’t the stock market reflect your enthusiasm?
“The underlying principles of SanDisk have really not changed,” says Mehrotra. “The demand drivers are strong and in 2008 –our financial objectives are solidly in sight. And we are very much focused on growing our business profitably and I believe as we show results the stock market will reflect that in the stock price as well.”
Have you been approached by buyers?
“It’s our policy not to comment on that kind of speculation,” says Mehrotra
Price per megabytes was down for the quarter. Is that a trend?
“If you look at our markets for the last several years the price of flash products continues to come down in the marketplace,“ says Mehrotra . “We are able to pass this (savings) on to the consumer. And what this price decline really does is grow the existing market as well as create new ones.”
What’s your newest product?
Sansa Take TV (a competitor to Apple TV). It allows you to take your video content from the TV to the PC seamlessly in a simple and easy fashion, says says Mehrotra.
Dylan Ratigan asks the panel what they think of this stock?
Pete Najarian doesn’t like it because he feels P/E levels are high. However, he speculates the company could be a takeover target.
Guy Adami likes it for a trade and anticipates about 5% upside in the stock.
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Trader disclosure: On Oct 22, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (HAS), (INTC), (ATVI); Najarian Owns (AAPL), (GOOG), (NDAQ), (RACK), (YHOO) (CY); Finerman Owns (GS), (COV); Finerman's Firm Owns (ASD), (CTX), (MO), (NYX), (NMX), (WMT), (MSFT), (MDC), (TGT); Finerman's Firm And Finerman Own (HD), (KFT); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts