WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 187.70

+9.0%

Jan 2 9:30 AM EST

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To: clean86 who wrote (25570)	4/14/2004 5:59:41 PM
From: pompsander	Read Replies (3) of 60323

All the naysayers keep talking about commoditization and the fact that margins are being guided to 30%. O.K., if the market keeps growing at over 100% a year for the next few years (not unrealistic - look at the product lines now in place and the new products being rolled out almost daily), and SNDK loses 15% of its current market share in existing product lines due to new entrants (not likely - Company is signing long term deals with OEMs, getting shelf space and name recognition), and pricing in general declines 20%, which would have to be due to competition (or "commoditization")- which discounts licensing revenues off of patented controllers, etc, which might well increase 20% with such commoditization.............and the current P/E is 20......................I'sn't this the old argument always used with Dell? Maybe the ultimate question is going to be: Can SNDK grow fast enough to overcome all these supposed hurdles? The conference call seemed to indicate great confidence in that regard.

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