WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 163.61

+2.2%

Nov 6 3:59 PM EST

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To: All Mtn Ski who wrote (17956)	1/4/2001 1:58:56 PM
From: Ausdauer	Read Replies (1) of 60323

Has ML ever been right? As Art mentioned, did the ML report even consider that planned manufacturing efficiencies (die shrinks, 256 and 512Mbit chip densities, economies of scale...) have factored into falling flash chip prices? I think the assumption has been that demand has fallen and production has risen despite this creating a supply and demand imbalance. The worst case scenario is that suddenly nobody needs flash and their is a worldwide glut. I assume this is what ML intended to convey in their downgrade. As I mentioned, my Dad's ML broker called him and told him to expect a $12 to 14 dollar decline in the SNDK stock price the day of the downgrade. He even called my Dad pre-open to suggest that he may consider unloading some shares at the open given little premarket activity had been registered. How solid is the ML research? I guess most believe it is accurate. I think we won't know for sure until earnings start coming out and SNDK competitors reflect a bit on upcoming chip availability. Even John Reimer suggested that declining flash component prices would help counterbalance their price reductions and rebate offers. Too bad for Lexar though. I understand they planned to decrease raw material orders until such time their inventory is sold down. At least that was the take home message I got listening to their c.c. Aus

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