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

To: Binx Bolling who wrote (18640)	1/26/2001 6:11:28 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

Binx, my statement on set top boxes was merely a summary of what Eli Harari said at the conference call. Putting his remarks in context, he was talking about the wide range of appliances that would be ideal for flash memory applications. His point was that in areas such as those five outlined in my post, flash memory would become the technology of choice in the coming years. I think many investors are not realizing these far ranging applications, particularly in the mobile computing area, where small size, low power, and reliability are very important. It's not a matter of comparing memory size with alternative types of memory, such as the Microdrive or DataPlay, as Harari noted. It's simply a matter of determining which type of memory works best in a particular application. Costs, as we all know, will drop as the technology improves. I emphasize that in a young, fast growing company, investors should look for evidence of an increase in shareholder wealth as measured by the increase in the book value per share over time. SanDisk has one of the best records in this category, and what it means is that, contrary to so many other high tech stocks, SanDisk has much less downside risk. Note also that book value, which in this case runs about 25 percent of current share price, is unusually high for this type of company. Look at some of the other high growth companies and you'll see book value often less than 5 percent of share price, together with excessive amounts of debt, and very often no earnings whatsoever. Put all these factors together and then tell the typical analysts out there to shove off. Art