WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 155.64

-2.7%

3:59 PM EST

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To: Craig Freeman who wrote (4819)	2/20/1999 9:23:00 PM
From: Rex Dwyer	Read Replies (4) of 60323

Discounted present value. You just said they get about $8M in royalties per Q. That's $32M per year. If you assume no increases, and a long life, $32M of income from a 7% investment would indicate a present value of $457M. Dividing that by 24M shares gives about $19 per share. If the time is only 8 years, the present value would drop about in half with no growth. But if the payments increase, its worth more. So I think $17 is still about right. Anywhere in the $15 to $19 would seem fair to me given the assumptions I have made. Why don't you give it a shot and tell me what you think? Rex ($24 5/8)

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