WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 176.05

-2.0%

Dec 30 3:59 PM EST

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To: Art Bechhoefer who wrote (6243)	7/2/1999 12:20:00 PM
From: Ausdauer	Read Replies (1) of 60323

Art, I was just thinking about the issue of being "overbought" at present. I hardly think that we are leading the "overvalued" parade. We are profitable, have a market capitalization of 1.25 billion (small cap), almost 150 million in cash, no debt, a forward PE ratio of around 40 based on conservative estimates of $1.00 in 1999 (and a probable future growth rate of well over 40% year-over-year) and a price-to-book ratio of around 5. There are projections of 32 million mp3 players being sold by 2002 and digital cameras and color PDA's are currently topping the list of most popular consumer electronics devices. Many OEM's are bundling a moderate capacity SanDisk card with each sale and those have to begin to add up soon on a cummulative basis. SanDisk will also try to profit from SmartMedia sales as a hedge. Despite our recent run-up it is hard to make a case that we are grossly "overvalued" here. IMHO, just "underappreciated". Am I just rationalizing here? Unrealistic? Infatuated? Ausdauer ($44 13/16)

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