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

To: David W. Tucker who wrote (12234)	6/26/2000 9:35:00 AM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 60323

David, I understand that the Manassas, VA facility should be in operation before the end of this year. Here are a couple of comments based on related recent posts: The notion that profits in the last and next quarters are limited by capacity in the plants in Taiwan and China is not entirely true. SNDK got more capacity in Taiwan as a result of new plants that have been opened by Taiwan Semiconductor. And as production efficiency improves, an existing manufacturing operation is able to raise output through better quality control. As for one-time gains, a comment taken from Raging Bull indicates there won't be any more, but this is also not certain, inasmuch as SNDK still holds Taiwan Semiconductor shares which can be sold from time to time. Nor does the comment from Raging Bull take into account the ADDITIONAL royalties and licensing fees that are likely to be paid by firms such as Hitachi (see my earlier post). As for Lexar, in my view, it's just a question of time before this firm has to pay its share (and also pay royalties on flash memory units already sold). Another "one-time gain" that is likely to occur several times in the future. Maybe a PE of 20 is not too far from the truth! Art