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

To: Ausdauer who wrote (16465)	11/5/2000 3:54:12 PM
From: Sam Citron	Respond to of 60323

Aus, others, I have had a very small position in SNDK for some time and am considering taking a larger position, but I have several concerns. I have much less knowledge about the company than most of you, so I would appreciate any comments. The attractiveness of the company is simply that it is a pure play in the fastest growing segment of the semiconductor industry, has a pristine balance sheet, and is well-managed. My concerns are that competition will erode profit margins and eventually make flash into a commodity like DRAMs, although I am not much concerned about obsolescence risks, as I think SNDK is well positioned to ride the technology wave in new storage innovations. STEC and LEXR have very comparable products in the marketplace at identical or comparable prices to one another, and I think consumers will probably go with the one that is on sale for a dollar or two cheaper. Both have just gone public and will probably be very aggressive in matching any price moves by SNDK. Am I wrong to be haunted by visions of Verbatim and the countless other now defunct floppy disk companies of the eighties? What are the barriers to entry? What PE does a leading company in this industry deserve? Thanks in advance for your thoughts and help in clarifying these concerns. Sam