Flash! Digital Potential
02/06/2004 12:00 am EST
Two of the brightest minds in the investment business are Sherri Parker and Nancy Zambell, whose research in their UnDiscovered Stocks newsletter has led them to Lexar Media, a high technology play on digital cameras and flash memory.
"The digital camera is truly a great invention," says Nancy Zambell in her UnDiscovered Stocks. "We began investigating companies in this market and found a wonderful opportunity in Lexar Media (LEXR NASDAQ). Its high-performance flash cards and connectivity products are sold in the digital photography market - to personal, commercial, and industrial users. Due to better technology, prices of digital cameras are falling 35% to 45% yearly while demand is surging. And given that only 24% of US households own digital cameras, the sky is truly the limit for growth.
"In addition, as consumer electronics proliferate and go digital, Lexar finds adjacent growing markets, including PDAs, cell phones, video recorders, and MP3 players that use portable digital storage media to capture and retrieve digital content. Last October, Lexar was named one of the fastest-growing technology companies by Deloitte & Touche, for the third year in a row. Although Lexar's stock price vaulted three-fold in 2003, we believe that its significant growth in sales and earnings will propel it even further. Given the recent price weakness, we think this is the perfect time to buy this stock."