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

To: SBHX who wrote (11416)	5/24/2000 8:31:00 AM
From: SBHX	Respond to of 60323

Art, Let me rephrase that, I liked all my stocks : their fundamentals are great, in most of them earnings kept growing sequentially, so the PE kept growing and growing. In the example I have in mind, on a quarter when Earnings did not grow sequentially by 25%, I think to myself : fundamentals are GREAT, YoY, it was still 40% growth. When sequential growth stopped, I tell myself it's cyclical, and YoY is the right figure to look at. When YoY earnings growth dipped below 25%, I tell myself it's a single bad quarter, the next one will be better. I know you probably are way better at FA than I am, but for me, I find that many of the FA measurements are not strict enough to be followed rigorously. When you like a stock, you just like it, and nothing is going to change your mind until something bad happens. The fundamentals of a stock is good? That's a subjective statement. Fundamentals at the very least has to be compared against earnings growth vs P/E, not the size of the future market. It's a very easy trap for novices who invest as a hobby like me to fall into, and from the looks of it, the experts are not immune either. jmho.

To: SBHX who wrote (11416)	5/24/2000 6:24:00 PM
From: Art Bechhoefer	Respond to of 60323

I define fundamentals as the combination of measurements of production, sales, revenues, earnings, free cash flow, and additions to book value. The major differences in my measurements of fundamentals and what many others rely on in the financial statements are (1) estimates of intrinsic value based on the additional value of patents and other proprietary products (including well known brand names as an asset as well), and (2) quality of management as measured by the management track record in making timely strategic decisions, acting with sensitivity toward shareholders, and ability to find and retain skilled personnel. That's a tough set of criteria, and there aren't many companies that match up. In fact, I could easily limit the top ones to less than a dozen, and SanDisk would be among the best.