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

To: Jim Greif who wrote (6257)	7/2/1999 5:38:00 PM
From: Ausdauer	Respond to of 60323

Thread, Happy Fourth to everyone. Let's hope the fireworks continue with a grand finale on earnings day. P.S. Looks like sushi again tonite! Ausdauer ($46)

To: Jim Greif who wrote (6257)	7/2/1999 11:10:00 PM
From: Paul Senior	Read Replies (2) \| Respond to of 60323

Jim, Aus and thread: Well I think SNDK is overvalued on a price to sales and price to book value basis. And price to earnings basis. If a pe of 40 is normal for this stage of a growth company, I say that that is still too high. Maybe for the 1990's, but not for my timeframe in dealing with growth companies. "Underappreciated" I can step up to. Isn't it the only pure play in the booming digital camera market? As the word gets out -- assuming it hasn't already got out (a big assumption on my part) people are going to have to make a decision to step up and pay the high SNDK stock price if they want to invest in the digital-camera boom. And the momentum players will come on board, or are already with us. So the stock can certainly move higher. But IMO, to say the stock is not yet fairly valued even at the current price, is to say the stock is undervalued. It is absolutely not. And if someone thinks it relatively is (ie. relative to other 'growth' companies), I say that THAT comparative game is a very dangerous game indeed to play. (My opinion, and I've been wrong many, many times before.) Paul Senior (long SNDK)

To: Jim Greif who wrote (6257)	7/4/1999 1:12:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

Jim, Paul Senior, and others. I appreciate Paul's caution on whether SNDK is currently fully valued, and also the caution about comparing it with other stocks in the group, given the rise that many stocks have taken recently. In general, when the market averages hit new highs almost daily, I tend to stay on the sidelines. The kind of pre-holiday fireworks we've seen would give any prudent investor some second thoughts about buying at these levels. Thus, while I still consider SNDK undervalued at 45, I'm in no big hurry to buy it or to advise my clients to buy it. Given the record levels for NASDAQ stocks, I think we could see a pullback. I strongly doubt that we'll see SNDK in the 30's, short of a major market crash, which I don't expect. A favorable ruling on the Lexar litigation in the near future would, I'm afraid, make us all long for those days when we could have bought SNDK at a bargain price of 45! I also see more recognition of SNDK in the press. An article furnished by the Associated Press to various papers, including today's local Rochester Democrat & Chronicle, mentions SNDK in the context of Sony's memory stick, Lexar flash memory, IBM's Microdrive, and IOMEGA's Clik. That shows at least some recognition that traditional floppies and hard drives are not the only means for storing digital files. I also would not be surprised to see companies involved in related businesses taking a position in SanDisk, much the way Seagate did years ago. Combine this new recognition and investment interest with the likelihood of a favorable ruling in the Lexar suits and you have a lot of reasons for buying SNDK on weakness, but still close to its current price.