WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 176.34

-5.8%

Dec 12 9:30 AM EST

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To: pompsander who wrote (35321)	2/16/2007 7:05:51 PM
From: Smiley2	Read Replies (2) of 60323

Just 16 days ago on the earnings CC, Sandisk was emphasizing the self-corrective nature of supply/demand balance and seeing evidence of competition moving some production to dram. Today, they are talking about significant margin pressure for the next three quarters. What changed in between? The only public news that I`m aware of is Micron reiterating their determination to ramp up their joint nand project with Intel. Nothing really new. Sandisk should already have a decent handle on manufacturing cost reductions and margin effects of increasing noncaptive supply for the rest of the year. Did they suddenly realize that the competition won`t be backing off anytime soon, if ever? Or, did Eli experience an epiphany on vacation and decide to push the likes of Hynix and STM out of nand? If Toshiba is to make good on their stated goal of 40% market share in the next 2-3 years, that share has to come from somewhere. Samsung won`t be ceding much share and I don`t see IMFT backing down. Some employee reductions had to happen but the salary cuts/freeze smell of digging trenches.

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