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

To: Greg h2o who wrote (11432)	5/24/2000 6:38:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

Greg, you raise a good question. If we accept a price-earnings ratio of 150 on '01 earnings, we are assuming that earnings should triple roughly between now and then. Well, they're doing that! When we look at the relationship between share price and sales per share, while that appears to be high, an equally important factor is the growth rate in revenues (perhaps more important even than earnings in a young company with high research and development costs). Looking at other technology companies and comparing these statistics with other company earnings and sales, I think SanDisk comes out looking like a real bargain, even at the prices it reached in March and April. In fact, as I have said before, a price of 250 is not out of line, but may be reached later instead of sooner, in view of the reluctance of institutional investors to get back into tech stocks. Art