WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 169.55

-0.2%

Dec 9 3:59 PM EST

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To: Sam who wrote (6665)	8/18/1999 11:00:00 PM
From: Craig Freeman	Read Replies (1) of 60323

Sam, since SNDK was at $5 just ten months ago -- after an endless stream of good news -- what basis do you have to believe that the offering will "go off between 82 and 85"? SNDK's P/E is ~150. With a P/E greater than any major 'Net stock with measurable earnings, how do you justify this price? MSFT trades at a P/E below 60. Intel's is ~37. If these monopolistic giants with multi-billa-buck profits and multi-year track records command such P/Es, what makes you think that SNDK's quarterly profit of $1.5M makes it worthy of a $2B+ market value? It reminds me of the first Austin Powers movie where Dr. Evil says that he will ransom the world for "one million dollars". And after someone says that $1M is not a whole lot of money, he changes his mind and asks for "$100 billion dollars". I, for one, would have preferred a bond offering or a split over a shareholder distribution of neon-blue, striped leisure suits. But even that would have been better than 3M new shares. Craig

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