Fusion-io (NYSE: FIO): This Fallen Tech Star is Poised for a 45% Rally

For the past 20 years, you've been working on computers that store information on hard disk drives. These turntable-like devices, made by companies such as Western Digital (NASDAQ: WDC) and Seagate Technology (NASDAQ: STX), have benefited from tremendous improvements, enabling these drives to hold ever-larger amounts of data.

But the disk drive era may soon be coming to an end. Flash drives, which have no moving parts, consume less power and can be made in small form factors, are a much better choice for today's electronic devices. They are in your smartphones, tablet computers, and increasingly, traditional desktop and laptop computers.

The disk drive makers see the writing on the wall -- and they're breaking out their checkbooks. Western Digital, for example, has acquired three companies over the past four months that possess flash drive expertise: Virident, sTec and VeloBit. Indeed, it was the $685 million purchase of Virident in September that caused investors to take notice of the fact that few standalone flash memory firms remain available, now that this niche is rapidly consolidating.  (more)

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