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

To: Art Bechhoefer who wrote (7499)	10/12/1999 10:44:00 AM
From: Ausdauer	Read Replies (1) \| Respond to of 60323

Art, As per Andrew MacClellan's article in Electronic Buyers News... "This changes us from a fabless company to a company that has-or will have-a major investment in a fab," said Dan Auclair, SanDisk's senior vice president of business development and licensing. "The flash market right now is extremely strong, and we think we will need all of this [capacity] and probably more to meet demand." Perhaps some analysts see this as a risky proposition. I see it as a necessary step to meet the overwhelming demand for SanDisk's products. As such, the foundry investment may curtail earnings growth somewhat in 2000 (R&D expenditures, increased marketing, share dilution from raising capital,...), but look at how big the company will be once the growing pains are behind us. As such, I interpret the Toshiba announcement as extremely bullish. Again, SanDisk has an excellent retail presence and CompactFlash and MMC demand are just hitting stride. I see the positive cash flow and the licensing revenues as being critical for insuring SanDisk's capacity for growth. I think that few other company's with SanDisk's relatively small stature (based on market capitalization) as being able to boast such lofty plans for the millennium. I repeat my feelings that current UMC production geared at CF, MMC and SD production will "front" the capital needed for expansion. Market demand for flash memory products will be substantial from here on in as digital photography and Internet music players have arrived. Let there be no doubt about that. I remain bullish on the remainder of 1999. I remain positive on the patent infringement case against Lexar. I remain optimistic that the 1999 Holiday Season will bring a renewed interest in SanDisk as an investment opportunity (The Iomega Effect). Good Luck to All SanDisk Longs, Ausdauer ($59.00)