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

To: Art Bechhoefer who wrote (12356)	6/28/2000 9:43:00 PM
From: Ausdauer	Respond to of 60323

We talked about Pocket PC kicking Palm's butt a few months back. There were a lot of tempers boiling back then. Palm has a cult following. Jeff Hawkins managed to get just the right ingredients into Palm and the chemistry that resulted with the average consumer was magical. Now Palm has chosen SanDisk's removable memory solution. This is not a token acknowledgement. Please go to this site... sdcard.org __________________________________________________________________________ PALM IS AN EXECUTIVE MEMBER AND A NEW BOARD MEMBER OF THE SDA. THAT IS A VERY HEARTY ENDORSEMENT INDEED. __________________________________________________________________________ Yesterday's Palm announcement is more than we could have ever hoped for. In fact, most of us probably never thought we would get the Palm endorsement at all. To see SanDisk's stock price down substantially despite this news is very difficult to explain. It is illogical. And at this point I am convinced that the market could care less about the importance of any endorsements SanDisk may garner. It will require us to shake off the market's treatment of SNDK and re-examine our beliefs. The record Q1 results, the consummation of the FlashVision JV, the Lexar Media victory, the Pocket PC launch, the QCOM endorsement,... ...and now Palm as a board member of the SDA. How much more good news can we take? Ausdauer Just a befuddled SanDisk investor trying to recover from all the good news of the last quarter.

To: Art Bechhoefer who wrote (12356)	6/28/2000 9:47:00 PM
From: Ausdauer	Read Replies (2) \| Respond to of 60323

Art, can't help but feel we're being bludgeoned with good news here. We got Palm in the "palm" of our hand. We got Microsoft in our "pocket". Ausdauer Palm Computing...a card carrying member of the SDA.

To: Art Bechhoefer who wrote (12356)	6/28/2000 10:33:00 PM
From: wily	Respond to of 60323

Art, regarding your objections: (1) Better chip yields from foundaries, lowering cost per flash unit I believe you have to start over on the learning curve with each new shrink, so while your old processes are maturing, your new ones are just starting out, and it maybe all averages out. (2) Increased production from new plants in Taiwan, as a result of agreements with Taiwan Semiconductor This is something I hadn't considered. I'll have to look for those references. Do you have any idea what percent of capacity this will represent? (3) A non-linear leap in chip production from the Manassas plant, once that plant starts operating I did include this in my table. The first line adds output from the Manassas plant in 2001 and 2002. I allowed for half of the projected total output of that plant, (since they are splitting with Toshiba). (4) Higher gross margins resulting from efficiencies in existing fabrication. How is this different from (1)? there will be additional "one-time" gains from the sale of shares in what was originally SanDisk's investment in the Taiwan facilities Granted, but I'm just projecting operating earnings. Thanks for the comments, wily

To: Art Bechhoefer who wrote (12356)	6/29/2000 7:29:00 AM
From: limtex	Read Replies (2) \| Respond to of 60323

Art - We presumably also have to assume that CF and MMC sales prices are going to drop by....50% or more per annum. That is along the lines that Eli has previously said that the company should be aiming for. Not sure about the annual price drop but something like it. Still should produce better than $1.27 2001 and $1.87 2002. In fact hopefully much better otheriwse what would be the point since a reasonable P/E on $1.27 might be say 50 and thats where we are roughly now. Palm is big news. I would have thought ...very big news. Best regards, L