WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 157.75

+0.4%

Nov 14 9:30 AM EST

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To: Pam who wrote (26208)	6/25/2004 7:22:53 PM
From: limtex	Read Replies (1) of 60323

Pam - Well I am not sure that anyone on this thread predicted that the stock would drop from around $80 to around $40 with two of the best qtrs it has ever achieved, in fact two qtrs that were pretty outstanding by any standards. We seem to have forgotten the scale of the growth we have just seen. The anlaysts and the shorts never predicted what d-cameras would do to the flash memory market. We did on this thread and have been doing so for some time. The reaction to the outstanding earnings was a bolt from the blue and I do not beleive that it was cleaver shorts. My guess is that it is soemthing to do with institutional holders doing fancy things with stocks that they own and computer programs that feel the temperature of the stock and taking real time readings of various parameters of teh sock while it is trading during the day sell it short and carry on doing so as long as it works and it has been working. What would stop that would be buyers but when the stock went on its run late last year and early this year it was in the period just before SNDK joined an index and that always does odd things to a stocks price. Now that the stock is in the index off comes the pressure to buy and you then have a whole bunch more holders who have bought becuase they have to own the index and these guys als o do this protfolio enhancement stuff and there you go. Well why don't all stocks in indexes have the same haircut? I don't know. As for margins when suddenly did all these analysts who don't have a feel for any of the guts of the technology suddenly get a feel for that the margins in this business are disspearing? This too I have no idea but they apparenlty have nothing better to discuss than how badly SNDKs margins are going to be? Actually I seem to recall Eli preaching for years that lower ASPs were the way to build this business and now he is doing precisely that. Has anyone on the thread given a view of margins going forward? I think that is wehre we might usefully start some exploration and BTW does anyone know the date of the announcement? Best, L

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