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

To: Cardin Drake who wrote (10577)	4/21/2000 4:05:00 PM
From: Ausdauer	Respond to of 60323

Cardin, Yes, too bullish. You heard it from these lips. The reason I use caution is because Eli said growth would be equal to the average growth in the last several quarters which may be in the 20-25% range. It may be more than that, but I would be reluctant to read more into these statements. Thus, I will stick by a lower 2000 annual earnings of $1.20 per share. The 90 cent estimate by Edelstone is a total sandbag. I believe he is leaving room for several additional upward revisions. Perhaps it is in their nature to be conservative in their estimates. I also agree with you that the supply/demand forces are totally inverted in the favor of SanDisk and other flash memory providers. We are only able to fulfill 60% of the volume ordered which Eli sprinkles over each of the markets to keep OEM's happy. That is good business sense and will only help strenghten relationships. The suppy/demand inversion equates to stable pricing...so stable that Eli hinted they may voluntarily reduce costs once 256Mbit/D2 is fully implemented. Now that is confidence. Based on my EPS projections we are trading at a PE of about 75 once cash (net of debt) is calculated. I can live with that. Ausdauer