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: Ausdauer who wrote (15839)	10/21/2000 7:38:31 AM
From: orkrious	Read Replies (3) of 60323

Now if a worldwide recession is coming, well... A recession can be defined as something as simple as two quarters of declining GDP. This does not mean that people stop spending. It means that people become aa little tighter with their money. The world is not coming to an end. Given Eli's past comments about demand outstripping supply for at least a few years, I don't see a recession having that big an impact on SNDK's business. Digital photography and removable flash memory are such a paradigm shift that I see SNDK's business continuing to grow well even in an economic slow down. Will photography purchases slow down? Probably a little. Will the shift to downloading digitial music slow down? Not one whit. Kids will continue to spend. Will the advent of broadband wireless slow down the migration to removable flash for storing downloads in cell phones? No way. SNDK's business will continue to grow. A recession will cause a compression in all stocks' PEs, including SNDK's. But SNDK is a misunderstood company selling at 1/3 to 1/2 it's growth rate. Our revenues are growing what, over 200% a year. Our royalties are growing what, at least 100%. (Folks, I didn't go back and look up the exact percentages. Feel free to do so.) Yet our PE on a rolling basis (4x this past Q) is 44. As the story gets out and our PEG moves up far closer to 1.0, SNDK is going to go far higher. Now, off to a beautiful midwest fall morning round of golf. Jay

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