WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 172.66

-1.9%

1:40 PM EST

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To: limtex who wrote (28031)	4/26/2005 4:11:16 PM
From: pompsander	Read Replies (2) of 60323

"What is it about this stock" There seems to be a persistent belief that making and/or distributing flash is a simple commodity process, worthy of no higher a P/E than a grocery chain or tire store. But, is the Company likely to grow earnings faster than such stores? The IP that does exist for the company is discounted, as it wont't cover the "next big thing" (even though who has a better chance of developing the next generation of IP for the next big thing than the entity currently pouring money into R and D and has the expertise in the current big thing?). There also seems to be a sense that anyone can just "convert a fab" and start producing flash by the ton...but this seems not to be the case at Micron, either for technical or costing reasons. Improved gross margins? - so what? New product design wins - so what? Huge Cash trove - So what? Until NAND and DRAM are somehow separated in the minds of the investing community there seems little hope of Sandisk being granted a "traditional" technology P/E of 22 or 25 times projected earnings.

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