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: Louis Riley who wrote (1004)	10/18/1997 11:39:00 AM
From: Phaedrus	of 60323

Seems to me that all the anger at the CEO is somewhat displaced. The stock at $40 was way ahead of itself. IMHO below $30 it isnt and if gets to 20 I'll be buying more. Let the management manage their business to maximize our long term profits and the stock will take care of itself. I've owned this stock since $9 and I haven't sold it. I think they are very well positioned to capitalize on the growth of portable CE. This company has not historically had a lot of visiblity going into any quarter. The deferred revenue number on the BS does not include any royalties...and they signed two major cross licensing aggreements in the middle of the last quarter. I imagine there is some inventory overhang, but it seems like the next quarter will be substantially more than "flat" Longer term they have a great position for digital photography. This roll out is a long term thing. Do we suppose that consumers will buy the first cameras availible and thats it?? I dont think so. People will want the higher resolution cameras as they become availible and as the price points come down. Then I would imagine people will want more CF's to store their pictures on in a non volatile fashion. As EK and others roll out the kiosks to print photos, more non-techie types will make the jump to digital photography. Aside from that there are many applications for CF. SNDK recently signed an agreement with the data security company Spyrus. Spyrus is going to use CF for one of their security apps. The point is that the applications for CF are expanding and there seems to be strong industry support for this form factor. As far as the offerng goes, I wasnt too happy with that, but we dont know when or how much they are going to raise. Most times, a company has a story to tell when they raise capital - I hope SNDK is no different. More shares O/S may not be a bad thing for trading this stock. In the mean time it seems as if they have all the capacity they need with the fab they invested in. IMHO the long term fundamentals with this company are in great shape. At $40, the stock was ahead of itself short term. How ever to me that was just noise and long term we'll be fine if we can weather the short term gyrations. Just my thoughts... good luck to all.

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