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

To: Cooters who wrote (15100)	9/27/2000 1:18:03 PM
From: ColtonGang	Respond to of 60323

Does this sound like a stock down 6 bucks!........SanDisk: Film Bites the Dust Wednesday, September 27, 2000 12:09:00 AM - InternetStockReport by Tom Taulli - internetstockreport.com I think it is inevitable that traditional camera film will suffer the same fate as the typewriter and vinyl records. Of course, the future is digital photography. A leading infrastructure company in this space is SanDisk Corporation (NASDAQ:SNDK). The company is the mastermind of Eli Harari, who founded SanDisk in 1988. He is a pioneer in the non-volatile memory industry, with a variety of patents to his name. He has a Ph.D. in solid state sciences from Princeton and has been with such companies as Honeywell, Intel and Hughes Aircraft Microelectronics. Now, his company is the largest supplier of flash data storage products. In late 1995, the company went public. Currently, the market cap is $4.8 billion and there are about 800 employees. The company has been the developer of key standards for flash memory cards. For example, the company introduced the first removable flash MultiMediaCard (its an ultra small size form factor card). In all, the company has more than 100 U.S. patents. Okay, so what is flash memory? Well, it stores large amounts of information. And, the information does not disappear if the device is turned off. Yep, it is perfect for digital cameras. Actually, it is perfect for other types of multimedia devices, such as MP3 players, PDAs, and smart phones. The company has been growing at fever pitch. In the past quarter, sales were $143.9 million, which was a 174% increase from the same period a year ago (the sequential growth rate was 32%). About $122.6 million of the revenues were from product sales and $21.4 from licensing fees. Net income was $24.3 million. In fact, the company has had profits every year since it went public. True, there are risk factors. Competition will intensify. There are also component shortages. However, the company has spent huge sums to deal with capacity constraints and is also continuing to innovate its product line. Besides, the marketplace is enormous for SanDisk. Keep in mind that the digital camera market is expected to be 6.5 million units this year and 40 million by 2004.

To: Cooters who wrote (15100)	9/27/2000 1:55:14 PM
From: Road Walker	Respond to of 60323

Cooters, EK did say that sales were down across it's product lines, including digital cameras. John

To: Cooters who wrote (15100)	9/27/2000 6:39:03 PM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 60323

Cooters, in regard to why SNDK would go down, I don't know, but here is what I wrote in part to my clients: KODAK announced weaker film sales would reduce third quarter profits by some 15 percent. EK shares, like INTC, were trading around 60 and promptly fell to the low 40's. Kodak officials could not explain the slower film sales but thought it might be due to retail dealers maintaining lower inventory levels. But another explanation could be that a growing number of amateur and hobbyist photographers who take hundreds of photos every year are switching to digital. Sales of digital cameras are up about 300 percent over last year. Even more important, digital camera buyers are generally those who would ordinarily buy more conventional film than the average occasional user. THE TREND toward digital represents a structural change in photography and the materials used by photographers. Kodak, though it has attempted to position itself in the digital market, still has no replacement for film. Had the company invested in the technology for digital "film," it could have participated in the huge profit growth that flash memory companies such as SANDISK are now experiencing. Instead, Kodak decided to protect its market for film processing and paper by developing digital products that would encourage consumers to come to photo stores for prints or scanning of digital images. Judging by the number of new color printers for home use, bearing names such as Hewlett Packard, Epson, and Canon, Kodak made the wrong decision. Barring a major change in corporate culture, Kodak stock may not recover for years. I don't think there's any doubt that SNDK is picking up business went to Kodak in the days of conventional film. Today's action is unfathomable. Art