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Bank Hapoalim predicts that M-Systems Flash Disk Pioneers (FLSH) is likely to hold a second stock offering next year.

Analyst Shai Kamin also believes the flash memory maker will opt to dual-list its stock on the

Tel Aviv Stock Exchange

, assuming that regulations are relaxed to make the process relatively pain-free. Amendment of the regulations governing dual listing is under way.

Kamin reiterated the bank¿s buy recommendation and set a price target of $37, below the $50 target set in August but still almost 40% above Tuesday's closing price on Wall Street.

Kamin expects that M-Systems will end 2000 with revenues of $94 million and a net profit of $4.1 million, excluding a nonrecurring expense on buying

Fortress U& T

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for $10.3 million. In 1999 the company reported revenues of $30.4 million, and lost a net $1.6 million. As for 2001, the analyst believes M-Systems will bring in revenues of $139 million and will net $14 million.

He says M-Systems also invested $10 million in the startup

Saifun Technologies

, which makes memory components that retain their content without power. It also opened sales offices in Seoul and Vienna and plans to open offices in China.

Kamin expects that the new product line M-Systems has under development, targeting end-users, not equipment makers, will begin to sell strongly in 2002. He estimates their potential at hundreds of millions of dollars a year.

M-Systems develops, makes and markets data storage products. Its flagship flash disks are used mainly in embedded systems, providing the functions of mechanical hard drives to silicon chips. Its flash disks, based on patented TrueFFS technology, include DiskOnChip and Fast Flash Disk.

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