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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Craig Freeman who wrote (6053)	6/18/1999 3:11:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

Craig, I think we can get at least a little better idea of the potential price for SNDK, but not based on earnings. Earnings are usually not a good indicator for younger companies that are growing fast, since so much money has to be plowed back into expansion of manufacturing, sales, etc. Sales are a better measure, since there are accepted rules of thumb for the stock price as a multiple of sales per share. Also the ratio of share price to book value can be a useful measure for comparing with similar companies. If a similar company is selling at 10 to 15 times book value, which is not unusual for tech stocks, then one might conclude that, at only 4 to 5 times book value, the present price of SNDK could easily double. Like I said earlier, even the 40 level is almost history.