WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 174.21

+6.9%

Nov 10 3:59 PM EST

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To: Cardin Drake who wrote (13287)	7/24/2000 6:29:14 PM
From: Ausdauer	Read Replies (3) of 60323

Cardin, Your are building a strong and credible reputation here with your earnings predictions. Clearly if we are only able to replicate Q2 during Q3 and Q4 we end up with $1.20 for the year. This would be an ultra-conservative estimate. 21¢ + 33¢ + 33¢ + 33¢ = $1.20 If we have EPS growth of 20% for Q3 and Q4 sequentially things look a bit brighter. I have revised my estimates from $1.12 to $1.42 for 2000. 21¢ + 33¢ + 40¢ + 48¢ = $1.42 Thus, we are trading at a PE of under 50 based on these 2000 estimates. This calculation does not take into account cash on hand (net of debt) which I generally deduct from the market cap before making my calculations. Since this is not a generally accepted practice it would not be fair to use it in my estimate of the current PE. One hidden source of revenue would be new CompactFlash assembly licensees. I think we should start to see revenues from this source before the end of the year. Also, there may be lump payments for prior CF sales if SanDisk can enforce the patents retroactively. I am not sure if this is a reasonable assumption. I think we are trading at a very attractive price given the growth trajectory and "the story". It is hard to find a better story out there, IMHO. Aus

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