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

To: Steve Lee who wrote (15505)	10/11/2000 8:54:29 PM
From: Art Bechhoefer	Respond to of 60323

Steve, the accounting for UMC profits was done not in the last quarter but in the quarter ending March 31. SanDisk's bookkeeping is fully in accord with generally accepted accounting practices. The gain recorded in the earlier quarter was genuine, but analysts, in fact discounted it because it was only a one-time gain. The key issues to look at in the coming earnings report are (1) change in earnings per share, (2) changes in revenue from sales and royalties/licensing fees, and (3) change in book value per share, which is the real measure of shareholder wealth. Failure to look at that data is what resulted in SNDK shares dropping to less than 7 in October, 1998, when book value was greater than share price and cash was equal to $5 per share. That failure created one of the lowest risk investment opportunities I've seen in almost any tech stock, save QUALCOMM.