Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Zeev Hed who wrote (10605)	4/24/2000 12:48:00 AM
From: The Prophet	Read Replies (1) \| Respond to of 60323

I completely agree, Zeev. This was the one question I had planned to ask Eli on the conference call had they not run out of time: "What % of earnings do you anticipate royalties will comprise in the long run?" We could have a QCOM or RMBS on our hands if we get really lucky.

To: Zeev Hed who wrote (10605)	4/25/2000 8:21:00 AM
From: Art Bechhoefer	Respond to of 60323

Zeev, as you note, the growth rate on royalties is certainly important, but as I see it, SNDK is considerably more than a company resting on its laurels. It is a dynamic group operation that continues to improve (and patent) processes for storing information reliably, at low cost, and with very low power requirements. It then puts those ideas to work through manufacturing and distribution facilities it owns, operates jointly, or contracts out. Royalties pay well, but when you can produce and sell your own products, the pay is even better. One can be quite optimistic about the new applications that have become practical only because of the innate characteristics of flash memory. That alone justifies a higher price for SNDK shares than we see now. Additionally, there is simply a great possibility for REPLACING existing hard disk drives with a better product that is worth the extra cost in terms of reliability, portability, and potentially safer storage of information. One should credit Sony with seeing the wide applications for flash memory -- everything from cameras to cell phones, computers, and music players. Unfortunately Sony's product isn't as good or as practical, or as accepted as SanDisk's. Art