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

To: Ausdauer who wrote (17819)	12/29/2000 10:48:02 PM
From: The Prophet	Respond to of 60323

You're right. I just assumed it was a SNDK discount, but maybe it isn't. I remember an analyst at the end of Q3 saying that with SNDK's upcoming shrink, they would be able to produce 50% more product at 35% lower cost. So theoretically, we could offset some of a $25 discount on the CF. My instinct is that earnings this Q should be much stronger than projected. This is based on my assumptions that in Q3, SNDK stocked the retailers for the upcoming Q4 buysiness; add the Lexar settlement; add the correction to 2H royalties; and add the huge growth in digital camera and MP3 players. Now, all this could be for naught if margins deteriorated dramaticaly during the Q, which could have happened. Also, I would expect flat guidance, at best, for Q2, especially as the economy slows. But overall, I could see earnings much hugher in Q4 than the 36 cent projection. Prophet