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

To: Road Walker who wrote (18546)	1/25/2001 8:30:51 AM
From: capt rocky 1	Read Replies (1) \| Respond to of 60323

all: the reason for the slump in camera sales was the market falling on it's face from sept. on. although christmas sales were strong , they were nowhere near what they could have been.retailers buy well in advance of season . thay have inventory left and will not order as heavy in the coming quarters. lets face it . digital cameras are a upper middle class item. the very class that was hurt by the tech. wreck.we need either /or the prices to come down to levels of the ordinary purchasers or the market to make money for the upper mid. so they loosen the pursestrings. gas prices also got rid of disposable income. if sndk hits 20 anything i'm in again. rocky. also if prudential downgrades this stock too. it is a good sign.

To: Road Walker who wrote (18546)	1/25/2001 9:54:49 AM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 60323

John, one of the facts mentioned at the cc was that new bookings (for OEM) were down 25 percent. Thus, lower sales for the first quarter, and possible Q2 of 2001, will reflect, as Eli noted, the need to adjust inventories. But this doesn't mean that camera sales are turning down; merely that camera sales were increasing less than expected. Note also that if other card manufacturers reduce prices and thereby gain sales in total units, SNDK is likely to get more, not less royalties. I can't remember if SNDK receives payment for OEM sales at the time the product is shipped or after the OEM ships its products to retailers. If the latter, then the delay in accounting for the sales would improve the results for the first quarter 2001. Does anyone know what the practice is in recording sales to OEM? There was some discussion on this much earlier. Art

To: Road Walker who wrote (18546)	1/25/2001 1:56:09 PM
From: BillyG	Read Replies (1) \| Respond to of 60323

Most digital camera buyers look for the best price on CF or MMC cards. They are practically commodity goods. SanDisk cards sell at a higher price so I would not be surprised to see their branded sales hurting in the 16M to 128M range. Many cameras come bundled with the SNDK lower end 8M cards and SNDK seems to have a stronger presence above 128M. You are correct in that increased sales of non-SNDK cards would tend to boost their royalty revenue from the other suppliers. This would also contribute to an inventory problem for SNDK. I can't explain the street's strong reaction today. JMHO