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

To: DaveMG who wrote (8777)	1/24/2000 4:45:00 PM
From: Ausdauer	Read Replies (2) \| Respond to of 60323

Dave, I guess I am out of the loop. What is a "momo"? Aus

To: DaveMG who wrote (8777)	1/24/2000 5:55:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

We'll know more about whether SNDK is cheap when we see the financial statement. PE isn't always the most revealing measurement when a company is expanding rapidly, plowing new money into plant and equipment and into research. Price per share divided by sales per share might be more revealing, plus cash on hand, plus a few other things. Is it worth having a digital camera? Depends on what your intended uses are. If you want to send photos by e-mail, of course it's a natural. If you want to substitute for a fairly good 35mm camera, it depends on how many photos you expect to make in a year (more than 200?) and how many enlargements you might make. The real economy is in the enlargements or even regular sized prints, compared with the cost of commercial photofinishing. If you make more than 50 8x10 enlargements a year, you'll find the extra initial cost of digital is peanuts. I'm extremely happy with my Nikon Coolpix 950, though I admit a through-the-lens viewing or equivalent, such as is used in the top-of-the-line Olympus, would be better. The sharpness is amazing, and on top of that, if you make your own prints, you can control for color balance, cropping, highlighting, and other features that would be impossible to control with conventional color prints. I sent out 400 Xmas cards this year, each one with text and digital photo, at a cost of about $0.38 per card, including the paper, ink, and envelope - everything except the postage. With conventional technology, which I used last year, including a 3x5 print pasted on the card, the cost was about $0.55 per card. Art

To: DaveMG who wrote (8777)	1/24/2000 6:31:00 PM
From: Ausdauer	Read Replies (1) \| Respond to of 60323

Dave, But do you really still think SNDK is cheap? When I look at it's mkt cap it does indeed seem cheap compared with the size of the opportunity, but PE and P/sales are another thing, unless of course one looks at the world from the POV of a relativist, ie "JDSU trades at a PE of X so I don't see why SNDK can't trade at Y". I am struggling with this same concept. I agree totally with you that SanDisk "seems cheap based on the size of the opportunity". If you start applying PE's, P/S ratios or strict valuations you can end up talking yourself out of SanDisk. I think the size of the opportunity is huge. We got caught with our pants down somewhat because the fabless model was outgrown before alternatives could be worked out. Now it appears if major capital expenditures are needed to bring production in step with demand. I am still o.k. with SanDisk's valuation. I bought shares during the October tumble (starting with a small lot at $77 and then weighted lots all the way down to $40) and again when we dipped into the mid-60's a few weeks back. I wish we could fast forward about 18 months to see how the JV is working out and to examine SanDisk's execution during this transition period. But if I could see 18 months in the future then I wouldn't have to guess at investing at all. Ausdauer