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

To: docpaul who wrote (15563)	10/13/2000 8:56:56 AM
From: Ausdauer	Read Replies (2) \| Respond to of 60323

Just a gut reaction. Doc Paul, I posted my feelings about the detail of the SSTI report more as a "gut reaction" and missed the safe harbor statements that you posted. I didn't realize the disclosure regulations had changed so dramatically or that analysts were given such details so far in advance. The retail investor has been screwed over royaly if this is the case. Although such detailed disclosure (as exemplified by SSTI's announcement) is great for us little guys, I would still suspect that individual companies will factor in different levels of conservatism and demonstrate varying levels of comfort regarding disclosure as they present their projections to the investment community at large. If you look at SanDisk's guidance and the analyst estimates to date you will see that they bear little resemblance to reality. I would expect this level of conservatism to continue as it generally reflects Eli's nature and the preferences of the SanDisk management. Is it possible that the new disclosure regulations will liberate Eli and Co.? I hope so. I see myself owning about as much SNDK stock now as I will for the foreseeable future and would be happy to see more robust estimates from management. Having said that I am also comfortable with conservatism and continuing a "wait and see" attitude. In the past Dr. Harari has openly stated things like production growth (in megabytes) and rough estimates of top line growth in FAT round percentages. I think we will have to wait to see if most CEO's are actually willing to give out more detailed information regarding EPS projections. The fear is that there is always a chance to miss more robust projections especially when the pricing environment is volatile. I was surprised by the degree of detail that SSTI offered. If this type of disclosure is what we can expect from all companies in the future it will really level the playing field for insignificant individual investors like us. I suspect SSTI may be at the more liberal end of the projections/disclosure spectrum. Have you seen other semiconductor companies offer this degree of detail lately? It is a real eye-opener. (As Steve says, it may have more to do with getting the secondary off the ground now that it has been put on the back burner). Message 14573430 Aus