WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 181.54

+1.1%

Dec 26 9:30 AM EST

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To: slacker711 who wrote (27970)	4/21/2005 6:57:43 PM
From: clix	Read Replies (1) of 60323

One thing that is a little disconcerting, if we are seeing -10% QoQ declines with a tight memory environment, what will happen if/when oversupply hits again? What I don't understand is who is driving these ASP declines. If Sandisk and Lexar combined have 2/3 of the flashcard market (at least in the US), and Lexar isn't interested in lower ASPs, who is doing it? Sandisk? Or the other 1/3? Sandisk has said recently that their business model expects 43% YoY ASP declines, 25%-35% annual revenue growth, 35%-40% gross margins, and 20%-24% operating income. They seem to be doing better in terms of margins but not in terms of revenue growth and ASP declines. Still, by any "reasonable" measure, Sandisk seems undervalued now.

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