Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: NHP who wrote (6121)	6/22/1999 4:28:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

When you call for the shares, your cost basis will be the striking price of the options plus the original cost of the options. Don't forget that second cost! The reason it's hard to use earnings growth as a criteria for judging stock price is that there are so many factors that initially could drag down earnings. For example, they have a new plant making chips, and it's reasonable to assume they'll get a higher percentage of flawed chips initially than later on, when everything is going more smoothly. QUALCOMM was the same way a couple of years ago, when they had all kinds of handset quality control problems. Also raw sales, in terms of dollars, can also be misleading, because the price per chip of given memory size is falling rapidly. Unit sales, either in terms of actual units shipped or in terms of average memory size per unit, are a better measure.