WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 226.46

+2.2%

10:17 AM EST

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To: Pam who wrote (25604)	4/15/2004 5:10:08 PM
From: Pam	Read Replies (1) of 60323

Looks like Sandisk is playing their cards right. They had above average inventory at the end of March Q and they are moving to 90nm MLC starting 3Q (although full benefits will be realized in 4Q) so they will have enough low-cost supply starting 3Q. The timing of price reduction to spur demand is perfect. In the meantime shareholders will suffer but eventually it will pay-off as margins get better with tight supplies. Looks like Lexar is stuck with nice amount of inventory and falling prices and this will impact their next Q with just break-even or slight profit. Sandisk can also have eps lower than last Q as they will have a jump in oper expenses and revenues not growing as rapidly as in the past (or partly getting offset by price reductions). Looks like 30-32 cents for next Q to me. This is just my opinion folks and I can be completely wrong. -Pam

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