By Shlomi Cohen Globes Online Isreal's Business Arena July 16, 2005
Investment guru Peter Lynch always urges investors to personally check out products and the pace of sales by companies in which they invest, or are about to invest. I was in the Netherlands last week. I went into many stores that sold digital cameras, and was stunned to see that every store packed a smart memory card manufactured by only one company - SanDisk Corp. (Nasdaq: SNDK) - together with every new digital camera.
As far as I could see, Lexar Media (Nasdaq: LEXR) is non-existent in the Netherlands, and M-Systems has no presence in that market. I noticed that many customers were buying a one-gigabyte memory card costing over �100 with the fancier cameras. The camera itself cost about �400. Ellis says that SanDisk�s sales are weak. According to what I saw in Europe, the opposite is true, and what I saw was only the cameras market, which is considered saturated, with slow growth. I assume that SanDisk�s other sectors, such as memory cards for wireless telephones and universal serial bus (USB), are even stronger.