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Technology Stocks : WDC/Sandisk Corporation

WDC 290.23

+7.4%

3:59 PM EST

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To: Art Bechhoefer who wrote (27113)	12/12/2004 8:26:58 PM
From: broozer	Read Replies (1) of 60323

You can call this an example of irrational pricing, but it is consistent with a long used strategy by Korean companies to dominate a sector and then slowly begin raising prices once they are in the cat bird seat. Art Following your thoughts above, if Samsung dumps product in the marketplace to gain share this would hurt all flash producers but benefit flash marketers like LEXR. In effect, companies like LEXR & PNY would be the recipient of Samsung's predatory pricing. Do you think it could ever deteriorate to the point that marketers of flash like LEXR could get better pricing, and have higher margins, than vertically integrated companies like SNDK (b/c Samsung would be dumping product below cost)? In this scenario, it would be cheaper for SNDK to purchase non-captive supply from Samsung than to mfg it via Flashvision. BTW, does anyone know much about PNY? Are they publicly traded? Who owns them? Broozer

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