WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 153.96

+0.7%

Nov 19 3:59 PM EST

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To: Sam who wrote (27799)	3/30/2005 11:07:53 AM
From: Pam	Read Replies (1) of 60323

Hi Art, Sam, So why do SNDK shares fail to reflect optimism for 2005? Well, there are still risks here and that risk comes from Samsung. If Samsung switches its DRAM lines to Nand production to take advantage of increased demand in the near-term from Shuffle and also because of the fear of losing marketshare to Toshiba/Sandisk once they have ramped-up production at their 300mm plant, chip prices could come down quickly. Eli is aware of this risk and have always said that Samsung is the biggest Nand supplier and he expects that they will be a responsible supplier. If they flood the market to destroy competition they hurt themselves more than others because they are the biggest supplier. But sometimes companies may still do exactly what Eli is expecting they will not and that is the risk here. In any case, I do not think Samsung can make Toshiba/Sandisk go away by flooding the market but they can discourage the newer entrants to shy away from this market by keeping the prices at levels that is not profitable for them to enter. -Pam

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