SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : WDC/Sandisk Corporation
WDC 166.30-4.7%Dec 17 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Art Bechhoefer who wrote (26324)7/8/2004 10:30:16 AM
From: Pam  Read Replies (1) of 60323
 
Hi Art,

Yahoo maybe overvalued but your comparison of Yahoo with Sandisk is completely out of line and your comparison of Yahoo with Sandisk on a PE multiple basis is absurd. There are significant differences between these two companies, the markets they address and the way they make money.

Just to mention a partial list of differences- Sandisk is a highly capital intensive business (which is inherently risky) with their products subject to rapid obsolescence and in a highly competitive semiconductor/consumer elelectronics space. Yahoo, is a service provider which relies mainly on advertising revenues and to some extent on paid services and have developed excellent brand equity over the last few years and constantly evolving and innovating to make net-surfers lives easier. Yahoo's products have a very short product life and you constantly keep revisiting them (for new information) but with Sandisk, after a while you may not want to upgrade your purchase for years! I use a 4MP camera and have several 128MB Flash cards and a single 256MB card and I have never run out of space to shoot whatever pictures I want for almost 2 years now. I hope you get the point.

If you want to compare Yahoo on a PE multiple basis, compare it with Google's or ASKJ or even EBAY's. As per your posting, the investment community is stupid to give Yahoo a market-cap of 40B when they can't give a market-cap of 4B to Sandisk?

-Pam
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News