Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Art Bechhoefer who wrote (16078)	10/25/2000 7:22:17 PM
From: limtex	Read Replies (1) \| Respond to of 60323

AB - 1. , there were no circuit breakers to dampen sudden panic selling. There are now. Fristly I don't thik oyu need a massive down ot have market crash. This market has crashed and it has done so over nine months. I think thre were three distinct down phases the last of which startd oafter Labor day and is still continuing. It is in my view the most devastating. Secondly what real force is suspending trading in the face of a market that wants to crash. IMHO it makes no differnce at best. 2.In 1987, at a point where the value of the dollar was excessively high compared with currencies such as the yen (far more distorted than it is now), the Fed, believing that inflation was imminent, raised interest rates. This strengthened the dollar even more, cut into exports, and really caused export earnings to drop. That is not the situation now, by a long shot Well just aminute I though thats exactly what two of the problems are namely $ v. Euro and US compnies earnigns from Euroland. 3. In contrast, companies like SanDisk that have little or no debt are in a much better position to maintain or increase profits SNDK could also fall victim to a predator when its stock is driven down. For instance what on earth would we do if Sony of EK came along this week and tendered for the stock at 10% to 15% over the market which could be $35 - $45 conceivably this week/next week? Art seems to me this is getting much harder and it doesn't always have a happy ending. Having said that in terms of fundamentals I don't think there is a lot better than SNDK or QCOM. So to be prepared to hang on for years and one day see the stock back to $60 might be all we can expect. Best regards, L