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

To: TREND1 who wrote (13117)	7/19/2000 11:35:42 PM
From: Sam	Respond to of 60323

Sandisk won't become fabless. Dr. H has said that he wants to make Sandisk a major international corporation. He's going for it all. They just started making money on their manufactured product. Once the JV gets going next year, they will begin making a lot of it, in addition to the royalty fees, I think. He's been at this for a long time now, he's not going to pull back from that ambition now that his target markets have started to explode. I think Intel is a better way to think about the company than QCOM, though I think he has the sense to know that his competition is such that CF/MMC/SD won't attain exactly the same dominant position that Pentium achieved for Intel in the 90s. Or rather, they might get the same dominant position in the world of flash, but Sandisk will have to share that position more than Intel did, due to the nature of the competition and the way the markets for them are exploding. Hence the JV. That won't keep them from becoming a very strong company, though. This is still just the beginning. Their cap is still less than $5 billion. While that may seem like a lot for a company that just made their first $100 million quarter last quarter, they should become a billion dollar company next year, and plausibly a $2 billion company the year after. Seven or eight times revenue for a company in the middle of explosive growth isn't unreasonable. And if the general market is still friendly to this sort of company (see, for example, NTAP), more than that is well within the realm of possibility (as long as we're speculating). My opinion, anyway. Sam

To: TREND1 who wrote (13117)	7/20/2000 2:37:29 AM
From: Uncle Frank	Respond to of 60323

>> What do you think of SNDK doing what QCOM did? QCOM charges fees, but lost money making phones, so they sold that part of business and stayed with fees. Based on the change in qcom's valuation since they sold the handset division, I wouldn't recommend it <lol>. uf

To: TREND1 who wrote (13117)	7/20/2000 7:09:58 PM
From: DukeCrow	Respond to of 60323

What do you think of SNDK doing what QCOM did? QCOM charges fees, but lost money making phones, so they sold that part of business and stayed with fees. How would SanDisk do what Qualcomm did? Qualcomm still makes chips and collects royalties, just like SanDisk does. SanDisk does not have a division comparable to Qualcomm's handset division. I guess the SanDisk equivalent would be if SanDisk made digital cameras, mp3 players, and handheld pc's with CF and MMC slots designed in. In my opinion, Qualcomm divested businesses in order to become what SanDisk has always been -- a chip and IP company. The only real difference is SanDisk has decided it needs ownership in its fabs to guarantee capacity. Qualcomm doesn't seem to be having capacity problems at this point in time. Ali