WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 241.58

-0.1%

1:12 PM EST

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To: Pam who wrote (25928)	5/24/2004 12:44:19 PM
From: Steve 667	Read Replies (1) of 60323

Hi Jill, Good post! Not only was Eric pissed in the cc. but he just seemed lost as to explain the declining margins for the first quarter before price cuts took place! Sandisk product margins going are going from 35% last year to 30% forecast for this year. Lexr pm's went from 21.9 last year to 15.7% this last quarter (before the price cuts) with no idea what it will drop to for the rest of the year. Quite a difference, don't you think. They are obviously going to be hurt by price declines much more than Sandisk. After listening to the conference in April, I have very little confidence in their management. Neither would anyone here you if they had listened to it! Obviously attorneys (slime) in the two lawsuits don't think so either. I think the lock step that characterized SNDK and LEXR stock price is coming to an end. For others that may be listening to this, it is important to remember that SNDK is not in competition for flash chips with Samsung or others, because they do not sell flash chips. They use them. I agree about the demand issue, but I think it is more the perception of demand than the demand, simply because SNDK has sooo many flash products with more being introduced just about every week. Unless everyone spends their tax refunds on a tank of gas instead of buying flash cards like they should. Bad consumer, bad. <gg> Regards, Steve

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