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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Rashomon who wrote (7746)	11/13/2000 12:09:11 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 30051

I think that SNDK could still drift to the low $40 if th current market malaise persists. SSTI is really a puzzle, Management believe 2001 will bring $2.90 to the bottom line and the growth is not abating, so why is the stock breaking the October lows? Well, it did not actually break yet (the low was matched earlier today)low? If $16 does not hold, it will be an indication that management numbers are probably too pessimistic and that DRAM capacity is being converted to flash capacity preping this sector to price pressures. In that case, SNDK might break it low $40 support as well. I am watching to see if some buying enthusiasm can be generated just above $16 or not. Short of these concerns, i think both companies are excellent outfits and am looking for a reentry into both. As for VLNC, a valuation of $100 share willmean a capitalization of $5 B, I think it is quite rich when the whole addressable market is $8 B, and you have to "reach" to assume that let say, $4 B of that will eventually be Li-polymer. For comparision, I have a "fair" value market cap on the bu$$ at $15 B, but they address a market which has a floor of $30 B and could under certain circumstance be three times as large (under the assumption that DRAM would reach $60 B and other non dram royalties bearing product would be half as much as DRAM). Zeev