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: Steve 667 who wrote (11499)	5/25/2000 10:40:00 PM
From: orkrious	Read Replies (2) \| Respond to of 60323

The price of a stock is only determined by what someone is willing to pay for it and nothing else. A more precise definition is the present value of the future cash flows of the company. These cash flows are discounted at an appropriate interest rate which takes into account risk. It is the uncertainty of the cash flows that determines the discount rate. Now, the market has an irrational fear about the cash flows, and we are tanking. Throw into the equation the excess supply caused by Seagate selling, and no one gives a sh*t about the cash flow. People just fear there is something wrong (raised uncertainties increase the rate the cash flows need to be discounted at), and everyone wants out. One day rationality will return to the pricing, SNDK will sell based on earnings over $1 this year with growth will in excess of 100%, and these prices will be in the rearview mirror. It is tough to call the bottom. The smart investors just keep buying a little more at each lower price level. Jay