Increased smartphone and tablet use, coupled with dependency on online cloud services and applications through these mobile devices for sharing data, has played an integral role in the growth of flash memory.
The rapid rise and adoption of SMAC (social, mobile, big data, and cloud) has brought explosive growth in smartphones, tablets, e-readers like the Amazon (AMZN) Kindle, and other portable devices.
Smartphones and tablets, both built on flash memory, are markets with high potential for growth in consumer electronics. Also, there’s a growing trend for ultra-thin designs.
SanDisk (SNDK) is keen to increase the contribution of client SSDs to its total revenues as it offers a stable pricing environment and high margins.
According to market research firm IHS iSuppli, demand for SSDs is expected to grow more than 40% each in 2014 and 2015.
SanDisk (SNDK) was founded in 1988. It’s a pioneer in flash memory technology. It designs, develops, and manufactures NAND flash memory storage solutions.
We explored the most commonly used valuation metric for financial companies—the price-book value. We also understood the relation between price-book value and return on equity.
Nothing is perfect. Although the price-book value ratio method looks robust, it has a few disadvantages that you should avoid.
So now that we know about the price-book value (or P/BV) ratio, let’s use our learning to apply this ratio to select stocks. The first step is to check for the average P/BV ratio for an industry and compare it with a company’s P/BV ratio and return on equity.
Historical analysis has shown that return on equity has a strong impact on banks’ value creation in the long run. So financials that have high price-book value ratios should also have high returns on equity.
Let’s say you are the owner of your own bank. You accept deposits from your relatives, and then you lend out cash to your friends. The deposits from your relatives are short-term loans and show up on the balance sheet as liabilities (after all, the money is not yours).
The price-book value ratio is the ratio of the market value of equity to the book value of equity. Price stands for the current market price of a stock. Book value is the total assets minus liabilities, or net worth, which is the accounting measure of shareholders’ equity in the balance sheet.
While the Christmas season is still months away, steel companies have other reasons to celebrate. The steel sector has seen a lot of positive news over the past several months.
On August 26, 2014, UBS upgraded ArcelorMittal (MT) to buy with a price target of $19. This is two notches above the current sell rating on the stock and represents around 35% upside from the current stock price.
The International Trade Commission (or ITC) ratified the ruling by the U.S. Department of Commerce (or DOC), which imposed antidumping duties as high as 118% on oil country tubular goods (or OCTG) from nine nations. This made all major steel companies’ stock rally.
The U.S. is the world’s third biggest steel consumer, followed by China and Japan. Over the years, the U.S. has emerged as the biggest steel importer globally.
Investment in a cyclical industry like steel has never been for the fainthearted. It’s a high beta industry, which means that the shares of steel companies fall or rise more than the broader market indices.
The number of rigs in play will loosely follow prices with a lag. Oil producers keep increasing the number of rigs that are drilling for oil as long crude oil prices make production profitable. As prices increase, rig additions may accelerate. When prices fall, rig additions may slow.
Since China has a rapidly growing economy with a large population of 1.35 billion people, China’s demand for energy is rising significantly. This demand plays a major role in the crude tanker industry.
Global automakers see China as a major source of growth now and in the future and are spending heavily to develop models for local tastes.