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

To: Steve 667 who wrote (15121)	9/27/2000 10:46:59 PM
From: Ausdauer	Read Replies (1) \| Respond to of 60323

Steve, I am breaking one of my own rules here by posting about SSTI, but I did wish to draw parallels between the companies. You have every right to disagree with these comments (and somehow I suspect that you will). 1) The current Q pre-announcement suggests total revenues and EPS will be quite similar to SNDK's Q2 report. I suspect there may be still some upside from SSTI management's guidance, but it probably won't be more than a few pennies. If you then look at the current share price you will see that SSTI Q3 sells at a substantial discount to SNDK Q2. I attribute this discrepancy to the C.A.P. It is my contention that the Competitive Advantage Period forms the top of the market capitalization canopy that describes the height and duration of net earnings over the useful life of the company's products. The area under the canopy helps to determine the multiple. 2) I mentioned this before. SanDisk is specializing in 3 main products: flash disks, CompactFlash and MMC/SDMC. An SSTI c.c. earlier this year indicated they are branching out into new custom-designed flash applications/ASIC with tens (10's) of new products each quarter being designed. This kind of specialty production suggests that SSTI is nimble and can shift production to fill increasing demand and downshift production to compensate for waning demand of various products. The SanDisk product lines are becoming well-recognized standards. SanDisk will continue to seek royalties on the proprietary portions of these specific standards. SSTI's flash ASIC's are not proprietary in the same sense in that the potential for commoditization does not currently exist. Sorry if these points are repetitious. I know I have posted parts of this discussion previously. Ausdauer