WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 221.51

-0.3%

Jan 16 9:30 AM EST

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To: Dave who wrote (24632)	1/21/2004 6:40:32 PM
From: FlameMe	Read Replies (1) of 60323

Yes, the increase in tax rate was expected i'm sure. In fact, I think the analysts could ratchet up their estimates by a very small amount if they wanted to take the optimistic view. I just think the margin compression could keep the earnings from showing any sequential improvement for the second half and that throws a real wet blanket on the stock. You need over $500 million in revenues at 28% margins to just meet this quarter's operating income. Throw in higher sg&a and higher tax rate and you need much more. I imagine that they are being conservative and the gross margins will be at least 32%, probably higher, but who knows.

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