WDC/Sandisk Corporation Message Board

STOCKTALK

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 176.05

-2.0%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Robert Douglas who wrote (27195)	1/4/2005 9:14:39 AM
From: Art Bechhoefer	Read Replies (2) of 60323

Re: Shorting SNDK. It's interesting to note that in the period from Nov. 15 to Dec. 15, the short position on SNDK dropped significantly but went up for LEXR. I mention this contrast because the views expressed by Bear Stearns may apply more to Lexar than to SanDisk. Why? It appears that pricing pressures are more harmful to those companies that have to pay royalties on some of their product, as does Lexar. In other words, SanDisk may have just enough royalty generating patents to survive in a period of price cutting. The companies paying royalties may find profit margins too slim and may eventually go out of business or be acquired. This consolidation so far has not begun in the flash memory business, but I expect it will be a feature this year. Note that one effect of consolidation is to reduce excess supply while gaining access to a particular firm's customers. Art

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next