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No. of Recommendations: 2
IIRC, SNDK is the market leader right now and both of them are in a tornado. Strict GG philosophy would say to buy both.

Jun-99 Sep-99 Dec-99 Mar-00
SNDK Revenue 52.5 67.5 82.7 109.4
Sequential Growth 19% 29% 22% 32%
YoY Growth 68% 111% 63% 148%

SSTI Revenue 23.0 35.1 48.3 62.3
Sequential Growth 25% 53% 38% 29%
YoY Growth 37% 94% 167% 240%

I'm a bit concerned about these figures though. Both SNDK and SSTI's Cash Conversion Cycle's have roughly doubled from June 1999 to March 2000, the Flowie for SSTI in particular is bad. Inventory and Receivable growth has not consistently remained below revenue growth in either SNDK or SSTI. Therefore, I'm somewhat suspicious of the revenue figures.

If one or both of these companies stumble, it shouldn't come as a surprise, but that might provide a good opportunity to buy in. I don't see anything that will displace flash cards in the near future (3 years or so).

BTW, I have no position in either SNDK or SSTI.

Marv
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