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

To: Ausdauer who wrote (11404)	5/23/2000 3:26:00 PM
From: Greg h2o	Read Replies (2) \| Respond to of 60323

### ### FIRST UNION SECURITIES, INC. ### ### SNDK: VIEW MARKET-RELATED WEAKNESS AS BUYING OPPORTUNITY; REITERATE STRONG BUY RATING SanDisk Corporation (SNDK?OTC) Stock Rating: 1 Price Target: $200 PRICE: $57 5/8 May 22, 2000 52-WEEK RANGE: $169 ? $13 Bennett Notman / (804) 344-6430 DIVIDEND/YIELD: none/nil Joseph D. Hiller / (804) 782-6629 EPS ESTIMATES (FY 12/31) 1999A 2000E 2001E Q1 ? March $0.07 $0.21A -- AVERAGE Q2 ? June 0.10 0.22 -- VOLUME: 1.7MM Q3 - September 0.11 0.23 -- Q4 ? December 0.15 0.24 -- INSIDERS ---- ---- ---- OWN: 8% Full-Year EPS $0.43 $0.90 $1.40 INSTITUTIONS OWN: 65% P/E RATIOS NMF 64.0X 41.2X SHARES OUTSTANDING: 66.6 million 3-5 YEAR EPS MARKET CAPITALIZATION: $3.8 billion GROWTH RATE: 52% KEY POINTS -- We view recent share price weakness provides buying opportunity -- Fundamentals remain outstanding -- Reiterate Strong Buy (1) recommendation DISCUSSION We Think Recent Share Price Weakness Provides Buying Opportunity. We believe that the recent market-related decline in SanDisk share price has provided investors with an attractive opportunity to acquire shares in this market leader at very attractive levels. We continue to believe that SanDisk is rapidly emerging as one of the most important companies in the consumer electronics space, providing enabling technology for a growing number of applications (digital cameras, Internet audio players, handheld PCs, smart cellular phones) in the early stages of what we expect to be explosive growth curves. SanDisk?s strong technological position (enhanced by its multi-level cell technology) and comprehensive patent portfolio should enable it to be one of the primary beneficiaries of the growth of these end-user markets. SanDisk dominates the market for the manufacture and sale of CompactFlash (CF) and MultiMediaCards (MMC) to consumer electronics OEMs (such as Kodak, Canon, Compaq, Hewlett-Packard, RCA and many others) and retail outlets (such as Circuit City, Best Buy, Staples, Office Depot and Amazon). As the sales of platforms utilizing these products for data storage increase (Digital cameras are expected to grow from roughly 4.5 million units in 1999 to over 30 million by 2004, Internet audio players are expected to grow from <1 million in 1999 to over 30 million by 2004) SanDisk is poised to continue its recent track record of explosive revenue and EPS growth. Fundamentals remain outstanding. SanDisk continues to enjoy one of the strongest fundamental outlooks of which we are aware. Despite revenue growth of 39% in Q1?00 over Q4?99, and our expectations for capacity additions that should enable sequential revenue increases of 15-20% in each quarter of FY?00, the company is still unable to meet all of the demand for its products. The excess demand situation has led to a favorable pricing environment which, when combined with technological progress and continued cost reductions, is leading to improving product gross margins for the company. SanDisk has achieved new bookings and backlog records in each of its last three quarters and currently has orders covering its entire production for the remainder of the year. Finally, SanDisk?s recent finalization of plans to build a wafer fabrication facility with Toshiba should lead to a significant capacity increase in 2001, further positioning the company for rapid growth. CONCLUSION Reiterate Strong Buy (1) Recommendation. We continue to believe that SanDisk is emerging as one of the most important companies in the technology space. While we expect the company?s shares will continue to be highly volatile, we strongly believe that SanDisk is rapidly emerging as a core holding for growth-oriented technology investors seeking to capitalize on the growing demand for next-generation consumer electronics platforms. At the current price, SanDisk shares trade at 41 times our FY?01 EPS estimate of $1.40, a 50% discount to the 80% EPS growth we expect the company to deliver between FY?99 and FY?01. We reiterate our Strong Buy (1) recommendation on SNDK stock for risk-tolerant investors.

To: Ausdauer who wrote (11404)	5/23/2000 10:01:00 PM
From: Craig Freeman	Read Replies (2) \| Respond to of 60323

Aus, for all the talk of not being able to time the market, here's my take: The last SNDK shares I sold 10% at $156-1/2. Before that it was 10% at $89. My tax basis is ~$12. I may be down ~10% for the year 2000 overall but SNDK has been a GREAT stock since I stepped in. I bought some at $30+ and sold some at $18 but when all was said and done, SNDK has paid off in a BIG way. My sister sold all her SNDK yesterday. She REALLY loved SNDK so you have to figure that the last to go have capitulated. Sis is a "strong" woman --- so if she gave in, you have to figure that most others caved in earlier. I pity the fool who bought at $170 but most of us on this thread have a basis in the teens. Let the NASD crash to 2,900. Let SNDK crash to $40. Are there many here who will lose? My father once told me how my Grandfather retired in 1932. He had lost a good part of all that he owned but still had enough resources to wait it all out. He slept late for ten years and, when he woke up, his stocks were golden. Sleep well my friends. Whatever you fears and whatever you may do, you can rely upon the fact that the game will continue .. with you or without you. Craig