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

To: Rocky Reid who wrote (11792)	6/4/2000 1:13:00 PM
From: Ausdauer	Respond to of 60323

SanDisk felt to have suffered from general market conditions, SEG sell-off and... ...according to the WSJ on 6/4/00... ...Paul Meeks, senior portfolio manager of the Merrill Lynch Global Technology Fund, who says the stock may be worth a short-term trade at these levels, but probably not a long-term investment...demand for flash storage products is booming, but he expects demand will ultimately slow. At that point, he says, "flash memory becomes a commodity product, and companies in this sector tend to struggle." As I stated in my investment thesis, SanDisk's IP may act as a buffer against such deterioration in target markets. SanDisk may also have the option of switching OEM's to MMC if CF becomes too compeititive. We are beginning to see this already with Casio's newest PDA offerings and the use of MMC in digital video cameras. The technical demands placed on manufacturers of MMC will likely protect SanDisk from the current difficulties encountered with CF card assemblers such as Viking, PNY, Lexar, Simple and Kingston. The '987 patent defense is crucial in avoiding commodity status. Ausdauer (Trying to attain some level of balance in my posts.)

To: Rocky Reid who wrote (11792)	6/4/2000 1:24:00 PM
From: Ausdauer	Respond to of 60323

Rocky, Thanks for the MP3/cell phone link... That means most people using the cell phone/MP3 player crossovers will likely use them the same way they use a RioPort or other ordinary MP3 device, downloading songs on a personal computer with a fast connection and transferring them to the phone, analysts say. The incremental cost of adding MMC support is relatively small, especially given the recent QCOM endorsement. Eli mentioned the importance of this event during the last On24 interview. Recall the cost of an empty SDMC/MMC slot is negligible. In the range of 50½ per device... Message 13115566 MMC is SanDisk's "trump card" against commoditization of flash memory applications because it requires 512 Mbit engineering expertise and MLC technology to produce a non-stacked product of sufficient capacity for MP3 applications. There just are not that many companies out there with this kind of technology. To say that MMC will be easily commoditized is to say that it is as to manufacture as a floppy disc. This simply is not true. Also, if the '987 patent remains unchallenged the per card royalties for CompactFlash should buttress SanDisk's position in the consumer market. Ausdauer Trying to reach a happy balance between optimism and pessimism.