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To: Mike Buckley who wrote (37336)	1/1/2001 10:24:55 PM
From: techreports	Read Replies (1) \| Respond to of 54805

Thanks! I did. What explanation do you have about that, considering that the company has grown and is expected to grow faster than SanDisk? With institutions owning half the outstanding shares, there's gotta be a reason (even if it's an irrational one) that the market is pricing the stock so low. Why is SSTI so cheap? Not really sure. I'm not an expert on the company and should probably do much more DD, but in my opinion, flash ram is considered a commodity. Therefor, they don't deserve a high PE. Second, some feel supply will catch up with demand any time now with the slowing economy. And SSTI competes in the low end. It's products are typically 500k to 16 megs. Many of the flash players left this area to compete in the higher markets which possibly provides better margins. By doing this, they basically left SSTI all by it's self in the low end. Supposedly, Intel competed against SSTI but decided to just license their technology (SuperFlash) instead of competing. oh, and the market is doing poorly, which doesn't help either.

To: Mike Buckley who wrote (37336)	1/1/2001 10:33:17 PM
From: hueyone	Respond to of 54805

Mr. Buckley's commentary on Sandisk in post #37328: I was looking at a few stock valuations today. Despite that SanDisk's stock is about 60% lower than when I bought it just five months ago (yikes! :), I was surprised that the relative valuation is as "low" as it is. It's PEG is only 1.05 and its PSR is only 3.7. Considering the growth opportunity and profit margin, I believe this is a classic example of market ineffeciency. But maybe that impression is rooted in the fact that I own the stock. :) Shortly thereafter Techreports posts on SSTI: Check out SSTI. PEG ratio of 0.26 Mr. Buckley's reply on SSTI: Thanks! I did. What explanation do you have about that, considering that the company has grown and is expected to grow faster than SanDisk? With institutions owning half the outstanding shares, there's gotta be a reason (even if it's an irrational one) that the market is pricing the stock so low. Mike, I can come up with a litany of possible reasons for SST's low price: trading with the SOX, misperception of SST's market as being limited to PC Bios, misunderstanding of Superflash's competitive advantages and scalability, etcetera. I would also like to add the reason you gave for Sandisk's low price: market ineffeciency.:) I think both stocks should be trading higher! Best, Huey@what'sgoodforthegooseisgoodforthegander.com