WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 169.55

-0.2%

3:59 PM EST

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To: limtex who wrote (5017)	3/10/1999 9:01:00 AM
From: Ausdauer	Read Replies (1) of 60323

Limtex, You mentioned to me your concern about the high PE SanDisk is sporting. Based on prior quarter earnings it is close to 80. Please recall the secondary was offered at $28, we are at $34. Consider that aftermarket sales from last Christmas will likely boost Q1 SanDisk sales. There is a delayed "aftershock" that we may enjoy. Thus, 13 cents may underestimate SanDisk's 1999 earnings potential. Consider EMC in China and backlogged retail demand. Recall that 1997 earnings were something like 80 cents and that 1998 was the annus horribilus for semiconductor manufacturers. And now we have about a buck and a quarter in steady licensing revenues to brag about. Think about the status of the Lexar suit and what implications enforceable card level patents will do once SanDisk comes around to collect overdue licensing fees from Lexar, PNY, Kingston, Kingmax, Eiger, Pretec, Microtech, Simple Technologies and the like. I figure $1.25 in solid licensing fees + profitable CF sales x 4 forward quarters + early MMC profits late 1999 + ???Lexar??? - $5.00/share in cash leaves us with a PE of about 15. Thus, the PE is somewhere between 15 and 80. Ausdauer

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