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

To: Road Walker who wrote (13104)	7/19/2000 9:25:26 PM
From: TREND1	Read Replies (1) \| Respond to of 60323

John You wrote Is anyone else concerned that the guidance was 20% growth in the 3rd quarter; 25% growth in the 4th quarter? It seems to me that this is below former guidance. I got the impression that capacity gains were not meeting expectations. Answer: (1) 20% growth in rev/qrt = 107%/year (2) Stable flash prices/ cc (3) Stable gross margins/cc (4) 100% earnings growth (5) Asuume PE=growth (6) SNDK with PE=100 (7) SNDK price going higher, if general chip market holds. Larry Dudash PS: Not every good at FA

To: Road Walker who wrote (13104)	7/19/2000 9:26:21 PM
From: orkrious	Read Replies (3) \| Respond to of 60323

Is anyone else concerned that the guidance was 20% growth in the 3rd quarter; 25% growth in the 4th quarter? I was at the annual meeting and I asked Eli about what seemed like low estimates. He said he likes to be conservative. He said last Q that he expected the next several quarters to have increases similar to Q1 over Q 4 '00. He also gave guidance for $12 mil in royalties. Look how well they actually did. Eli is the most honest CEO I've ever heard. He tells it like it is when things aren't great, and he underestimates how well things are when they are good. He likes to sandbag on estimates. This is what MSFT did for years so successfully. Underpromise and overdeliver. You heard it here first: we have a shot a $300 within a week of Q4 earnings next January. The only things holding us back have been SEG selling and the incorrect market perception that capacity coming on line would tank prices. At $150 now, we have a forward PEG under 1. Add to that that sales are skyrocketing, we are getting significant capacity for Q4 (still not nearly as much as we can sell), and that royalties are going to explode, and we are going much, much higher, and quickly. Jay