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

To: Zeev Hed who wrote (9825)	3/25/2000 2:57:00 PM
From: The Prophet	Read Replies (1) \| Respond to of 60323

I appreciate what you are saying, but consider the following: 1. Street was expecting 22 cents last quarter and got 30. 2. Eli Harari, SNDK's CEO who is usually quite conservative, stated the following in the last earnings release: "We believe that SanDisk's target markets are entering a strong growth phase, fueled by the accelerating convergence of consumer electronics, internet and wireless. These new and exciting markets represent immense opportunities for sustainable growth for SanDisk in the years ahead. We are optimistic about strong growth in our sales and profits in fiscal 2000." and "We are booked for the first quarter and for a substantial portion of the second quarter's revenue. The pricing environment is stable." He has since said that flash memory sales will be growing at a 40% clip the next quarter, and then a 50% clip thereafter. Using the new 128 mbit technology should allow for significant margin expansion, which leads me to believe we will begin seeing quarter to quarter earnings growth well in excess of 50%, even though we are supposed to be in the slow part of the year. Projecting forward, we could see 200% annual earnings growth, which would mean 2.50 or so in the next 12 months, then 7.50, then 22.50. 3. Of course, these are blind guesses, and margin expansion may slow, especially if sufficient supply from competitors comes on tap. Nevertheless, if these guesses are even close to correct, the stock is dramatically undervalued. With MP3's, digital cameras, cell phones, etc., experiencing exponential growth and not enough memory supply, SNDK is in the right place at the right time. This one could run away from you. Best, Prophet