WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 187.18

+2.9%

Dec 11 3:59 PM EST

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To: David Eggleston who wrote (52)	9/16/1996 10:34:00 PM
From: Clam Clam	of 60323

I think $500mm is likely this year. A 5x current year revenue multiple (Cal Yr 1996 should be roughly $105-110mm) is likely not sustainable over long-term but it certainly could be that or more as hype builds. C-Cube was all the rage in 1995 and traded for greater than 10x revenues. Granted, that was a different semiconductor environment but SanDisk has a lot of the same hype potential that C-Cube had - both proprietary chips for consumer electronics. SanDisk has been growing its revenues roughly 17% over last two quarters (that is sequential quarterly growth) with little digital camera contribution. When the DC kicks in, that growth rate should be above 20%, potentially significantly more. This would equate into revenues of at LEAST $210 million in 1997. 4 x $250mm = $1b, so the potential is there. Is such a valuation sustainable?? I wouldn't say so now, but if some other consumer electronic product takes off which needs high-density flash memory, you never know... It sounds like you own the stock... Where did you get in??

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