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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: BDR who wrote (30144)	8/19/2000 1:12:49 PM
From: StockHawk	Read Replies (1) \| Respond to of 54805

SNDK from Briefing.com SanDisk (SNDK) 69 7/8 +3 7/8: The stock has been in a holding pattern over the past few months, with key support near 60 and resistance in the 76-78 area... Stock making a strong run today, as money filtering from the first-tier tech companies (that have had a nice run this week) to some of the more attractively priced second tier outfits... Will SNDK be able to take out resistance in the 76-78 region on this run, or will it simply drift back to the lower end of the range? Briefing.com expects the former, as SNDK is well positioned to capitalize on the strong consumer demand for digital camcorders, smart phones, MP3 players, etc. as it is the world's leading supplier of flash data storage products... In fact, earlier this week company announced that it will supply Compaq (CPQ) with its stamp-size MultiMediaCard for storage of compressed music files in Compaq's iPAQ Personal Audio Player PA-1... Company struck a similar deal with Nike as well... Given the strong demand for the company's products, management noted that it expects a benign price environment for the next several quarters... Some on the street had been concerned that pricing pressures would dampen margins going forward... This concern (along with general sector weakness) helped to explain why the stock fell so sharply during the Spring... However, if management in correct and prices hold firm, stock is likely rebound strongly into year-end... SNDK is expected to earn $0.27 in Q3 (+157%), $0.30 in Q4 (+102%) and $1.14 (+166%) for FY00... Difficult comparisons point to slower (though still solid) growth in FY01, as consensus estimate is $1.39 (+21%)... Traders should note that the street has been playing catch up with SNDK's growth, underestimating last quarter's results by 50%... Not surprisingly, estimates have been rising sharply over the past 30 days... Using current estimates, SNDK trades at 61x and 50x FY00 and FY01 earnings with a long-term growth rate of 37%... As long as company continues to deliver on promise of strong earnings growth, we see no reason why PEG (p/e over l/t growth rate) can't climb to 2.25+... That sets a minimum price target of 95. - Robert Walberg, Briefing.com

To: BDR who wrote (30144)	8/21/2000 12:55:30 AM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

Dale, I'm interested in responses to your question about whether the e-book market will become a gorilla or royalty game. I think it's far too early to know right now with any reasonable degree of certainty. My thinking is that we need to keep an eye on how the products and the market develops. Depending on how the OS evolves, at least that part of it could become a gorilla game. But there are no guarantees. Even so, we'll need to be careful about what we call an "e-book" in the context you're mentioning. As an example, we know personal computer manufacturers aren't playing a gorilla game though we also know that the companies selling an operating system to be used inside them did (are.) --Mike Buckley