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NEW YORK (TheStreet) -- Shares of flash memory maker SanDisk (SNDK) got punished Monday, losing almost 14% of their value after the company warned that its fourth-quarter revenue would reach just $1.73 billion, almost 4% below its prior forecast of between $1.8 billion and $1.85 billion.

But the selloff presents a great buying opportunity.

The Milpitas, Calif.-based company also warned of lower non-generally accepted accounting principles gross margins, saying they would be around 45%, also below its prior guidance of 47% to 49%.

SanDisk will report fourth-quarter and full-year results on Jan. 21, but now there won't be any surprises.

How do investors play this selloff? Let's look at the chart:

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SanDisk competes with Micron (MU) - Get Micron Technology, Inc. Report and Samsung (SSNLF) , making flash memory and non-volatile storage chips known as DRAM and NAND, the types used in various mobile devices, tablets and smartphones. As the chart shows, SanDisk stock has lost about 15% so far this year.

With the stock closing Monday at $83.57, shares are down 23% from their 52-week high of $108.77 and are trading 15% below their 50-day moving average.

This as a great buying opportunity for a couple of reasons, not the least of which is that the stock can easily bounce back 10% on the day of earnings. But there are other fundamental reasons, too.

For starters, while we know what SanDisk's revenue and earnings will likely be, the company can still make up for this quarter's shortfall by blowing away investors with guidance.

And there is a chance that SanDisk's guidance will top consensus estimates, according to research firm IDC's global market forecast for 2015.

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IDC predicts smartphone and tablet spending will reach a record $484 billion this year alone, accounting for about 40% of all information technology growth.

This bodes well for SanDisk, which has a 19% market share in the NAND flash memory industry, trailing Samsung (30% share) and Toshiba (TOSBF) (21% share), according to Statista.

NAND is used in devices such as digital cameras, USB drives, tablets, smartphones and various high-end laptops.

Regarding IDC's prediction, SanDisk said that it expects its total addressable market for smartphones and tablets to grow to about $18 billion by 2020, up from about $12 billion in 2013, a 50% jump.

And that SanDisk's solid state drive business has become its fastest-growing segment -- up 65% year over year in the third quarter -- also means that the company is well-positioned to capitalize on IDC's growth forecast for this year because that business generates more than a quarter of total revenue.

What's more, with the recently closed acquisition of Fusion-io, SanDisk is on an accelerated path to become a leader in enterprise SSD storage, given Fusion-io's strong position with customers such as Apple (AAPL) - Get Apple Inc. Report , Facebook (FB) - Get Meta Platforms Inc. Class A Report and Hewlett-Packard (HPQ) - Get HP Inc. Report . Combined, these companies contribute to 61% of Fusion-io's total revenue.

Last but not least, the stock still has a consensus buy rating and a high analyst 12-month price target of $135, suggesting potential gains of 61%, according to CNN Money.

The median target of $110 would yield gains of 31%. And with earnings projected to grow annually at 15% over the next five years, SanDisk is one of the best bargains on the market, especially with its yield of 1.44%.

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TheStreet Ratings team rates SANDISK CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate SANDISK CORP (SNDK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: SNDK Ratings Report

This article is commentary by an independent contributor. At the time of publication, the author was long AAPL.