WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 163.67

+7.5%

1:32 PM EST

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To: Bargain Hunter who wrote (55031)	5/31/2013 2:17:26 PM
From: Sam	Read Replies (1) of 60323

True enough, but with effectively only two vendors left (Toshiba still assembles HDs, but not very many of them and they mostly just supply themselves), it will still be a profitable business for years to come. Predictions of the demise of tape have been around since about the late 80s, I think, and a lot of tape is still sold, albeit in dwindling amounts. But the larger point for NAND was that the market opportunity for SSDs is so large that it will take quite a few fabs to exhaust it, and that kind of capital investment won't be happening any time soon. Which is a prime reason for believing that a healthy supply/demand balance will continue for an "extended period of time," as Sanjay said. The question becomes, what does that do to Sandisk's and Micron's peak earnings capabilities, and what kind of PE will Mr. Market give them? I include Micron here because they are a similar albeit far from identical company that specializes in memory and has their own SSD division.

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