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

To: Jason Rooks who wrote (16580)	11/13/2000 1:24:47 PM
From: Jason Rooks	Respond to of 60323

More Press Monday November 13, 6:00 am Eastern Time Morningstar.com Heavy Demand Will Power SanDisk By Richard Johnson, Fund Manager Richard Johnson is manager of Columbia Small Cap Fund (Nasdaq: CMSCX - news) and Columbia Special Fund (Nasdaq: CLSPX - news). Today, he highlights SanDisk (Nasdaq: SNDK - news). Why Johnson Likes SanDisk ``Sandisk manufactures removable flash memory for digital cameras and camcorders, MP3 music players, new-generation palm pilots, and Internet-capable cell phones. The company is at the center of the convergence between digital consumer electronics, wireless devices, and the Internet. It is the industry leader, claiming 30% market share plus royalties on most of its competitors' revenues. ''Revenue grew 82% in 1999 and 162% in the first half of 2000. At the same time, operating income grew by 300% because of expanding margins. In 2001, 50% new growth is expected. Earnings-per-share estimates for this year are $1.27 and $1.55 for 2001. ``Capacity is now constrained, as the company can only satisfy 60% of demand. And, with the holidays approaching, demand will only continue to grow. To increase capacity and lower costs, SanDisk is now shrinking the size of its chips from 0.28 to 0.24 microns. It's expected the company can produce 35% more chips at a cost of 25% less per megabyte in time for the holiday season. ''The main risk to SanDisk is overcapacity and price competition as Hitachi (NYSE: HIT - news), Samsung, Toshiba , and Sony (NYSE: SNE - news) build their market presence. The first quarter of the year is also seasonally weak for this stock.`` Disclaimer: The information provided and opinions expressed here are those of the Forum guest and are not advice or recommendations of Morningstar, Inc. All information and opinions are for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. In addition, the views and opinions expressed in this article may change based on market and other information.