WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 181.08

+3.5%

Dec 19 9:30 AM EST

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To: Ausdauer who wrote (4310)	1/14/1999 7:57:00 PM
From: ED PLOPA	Read Replies (1) of 60323

I don't know what earnings will be in 2000 and in that case I would discount that multiple because of that uncertainty. SNDK may go from .40 in 1998 to .80 or so in 1999. Does that mean that they'll do 1.60 in 2000. Additionally, I don't know what a fair PE would be. The fact is that based .70 eps in 99 (according to Wheat First) the PE going forward is 33. Using a 50 PE obviously implies a potential price of 35. You're indicating that eps will be 1.00 alone from royalties. What is your source for this info? My opinion of fair value changes drastically as eps increases from .70. I also think that SNDK needs to spend (invest) their cash horde wisely. Do you have any knowledge or ideas as to what they may be considering doing with their stash? I agree with you that semi's are rallying and one should not fight the tape. However, there are times when one should take some of their chips off of the table and let the rest ride. Ed Plopa

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