WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 181.08

+3.5%

Dec 19 9:30 AM EST

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To: Art Bechhoefer who wrote (26302)	7/4/2004 11:37:14 AM
From: Dave	Read Replies (3) of 60323

The change in book value was primarily driven by their secondary offering. While the Retained Earnings account under Shareholders' Equity is growing, Additional Paid in Capital is growing faster. Therefore, while it is important for any company to produce an increasing Book Value per Share, it is also important to determine the causes for the growth. In SanDisk's case, the primary cause for its growth in Book Value per share was due to its Secondary Offering. RE: P/E Ratio The cause of this "low" P/E Ratio is uncertainty regarding SNDK's compressing profit margins. Of course, if profit margins stabilize and growth continues, one could reasonably assume that SNDK's P/E Ratio will expand. On the other hand, if Profit Margins should continue its descent, the P/E ratio (on a normalized basis) should continue to compress.

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