WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 172.26

-2.2%

Dec 31 3:59 PM EST

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To: Dave who wrote (28070)	4/27/2005 9:01:47 AM
From: Pam	Read Replies (1) of 60323

Hi Dave, Different managers use different criteria and everyone does not have "homogenous" expectations. Indeed, but that doesn't answer my question- What is the likelyhood of Sandisk seeing below $11.50 in the coming quarters to meet the requirement of the "noted" value investor to have EV/R of less than 0.5? Your original post seem to suggest that, even though you did not mention it explicitly. -Pam ============ Cary, RE: P/S I do somewhat endorse the P/S ratio for tech stocks especially when you want to buy "beaten down" tech. However, I believe a more robust metric is the EV/S or EV/R. Terminology aside, I believe EV or Enterprise Value is more robust since it takes into account all capital, i.e. Debt and Equity, invested in the company and subtracts cash. One noted value investor whose name escapes me at the present time believes in buying solid tech companies having an EV/R < .5. Of course, his "other" criteria is that the company has little debt and plenty of cash to ride out (so to speak) any downturn in the industry. Dave

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