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

To: Craig Freeman who wrote (16949)	12/5/2000 7:19:35 AM
From: Road Walker	Read Replies (1) \| Respond to of 60323

Craig, Interesting chart. Could you arrange for the S&P to come up to meet the Nasdaq rather than the NASDAQ going down to meet the S&P? TIA <g>, John

To: Craig Freeman who wrote (16949)	12/5/2000 8:00:04 AM
From: Art Bechhoefer	Respond to of 60323

Craig, the discussion of what is meant by "undervalued" must at some point deal with the INCREASING VALUE of SanDisk patents, as shown by the numbers of appliances using flash memory or similar devices in the top 100 list at Amazon.com. One result of the settlement agreement between SNDK and LEXR is the recognition that SNDK has key intellectual property, and that anyone who wants to be in this business is probably going to have to deal with SNDK. This new development (new as far as the outcome of the case is concerned) means that a greater value can be imputed to SanDisk patents, and consequently a greater intrinsic value to the stock. On this basis, the intrinsic value of the company (what a buyer interested in acquiring the whole company and all its patents would be willing to pay), factoring in rules of thumb such as 8 to 10 times revenue for the current fiscal year, one can safely say that the intrinsic value (as opposed to book value) of SNDK is currently above $100 per share. Note also that this intrinsic value is obviously not market value, which may be contingent on continued economic well being. Art