WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 181.54

+1.1%

Dec 26 9:30 AM EST

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To: Art Bechhoefer who wrote (18686)	1/26/2001 6:20:34 PM
From: Ausdauer	Read Replies (2) of 60323

Art, It was nice that you had a chance to speak with SanDisk IR. I agree with you that Eli and Frank projected a worse case scenario. I don't see how anyone could expect them to anticipate 2001 EPS given the current environment. I think their hope is that they are able to do a repeat of 2000 and that is very discouraging to say the least. Eli basically stated that they are going forward with their long range plans of building a state-of-the-art flash fab here in the US and have budgeted for the capital expenditures that will be needed to make this happen. Somewhat scary to think that they are expanding production at a time when inventories are bulging and the pricing environment seems hostile. Nevertheless, Eli must have some notion of what demand will be like in the second half of 2001 and beyond. Thus, he is taking bold steps here with the FlashVision venture. Execution will clearly be the biggest risk for investors. I have to think that SanDisk will need to begin down regulating the manufacturing in Taiwan. I wouldn't doubt that some of the UMC shares will be cashed out if there is a recovery in the Taiwan market. It seems clear that SNDK needs to prepare for the possibility that the second half of 2001 may not materialize as they predict. No doubt that there are some tough decisions to be made. Regardless of what anyone else may have to say about SanDisk's performance, 2000 was a huge year for them. I have held shares in the company for almost 3 years now and their growth has been impressive. It would appear that we are taking a breather now. The next few Q's may turn out to be very painful, not that the last 9 months have been a day at the beach either. I hope that most of the bad news is factored into the price now that all the dirty laundry has been aired in plain view. To think that 20 million shares could trade in one day is amazing. Hopefully some of these shares are in the hands of investors that share Eli's vision for this young company. Aus

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