WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 163.00

-0.4%

Nov 7 9:30 AM EST

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To: KevRupert who wrote (12638)	7/7/2000 6:08:54 PM
From: Ausdauer	of 60323

Symbol vs. SanDisk Symbol closed at $54.00 today yielding a PE ratio of 66 based on 1999 earnings of 82¢ per share. Based on estimates for 2000 it is trading at 52X forward earnings of $1.03 a share. The annualized EPS growth rate, as I mentioned earlier, is 25%. Symbol did more that a billion in total revenues last year, a record year. It also earned 22¢/share in Q1 of 2000 on total revenues of $320 million. It has a market capitalization that is double SanDisk. Look again at the table below... __________________________________________________________________________ Total Annual Revenues (millions) 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 $231.5 $319.4 $344.9 $360.0 $465.3 $515.1 $656.7 $774.4 $977.9 $1,139.3 Here are the same numbers for SNDK... ** $63 $98 $125 $136 $247 __________________________________________________________________________ It took Symbol 9 years to go from a $250 million to a billion dollar company.** The point I am trying to make is that I view the two companies similarly. The established company, Symbol, has settled into a steady though not heady stage of growth. SanDisk's current valuation doesn't seem to factor in the acceleration in earnings. I doubt that it will take SanDisk 9 years to go from a $250 million dollar a year company to a billion dollar company. Have a good weekend. Ausdauer

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