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

To: Zeev Hed who wrote (18703)	1/28/2001 9:35:20 AM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 60323

Zeev, I do not dispute the fact that the market does tend to go to extremes, both up and down, as we are seeing in the case of SNDK and others. However, my analysis concentrates on the fundamental strengths (and weaknesses) of the company and is not limited to prospects for the next few weeks or months, as typical of the time horizon for traders and speculators. All I'm saying is that if you look at (1) the sound financial condition (no need to issue more stock and dilute earnings per share), (2) the validity of the patents, and (3) the extremely fast growing demand for non-volatile memory, particularly in portable, battery driven devices, then the most rational conclusion is that SNDK is undervalued at its present price. Furthermore, I happen to place a lower value on the temporarily slower OEM sales because, particularly in the case of CF, the profits per unit are much less than for retail sales, which still appear to be brisk. What I object to is the failure of many analysts to look at the details: If semiconductor stocks are in trouble, they tend to think ALL of those stocks are in trouble. If a portion of sales of one company look weak, then they extend their fears to ALL the stocks in the group. Thus, I see the current price of SNDK resulting mainly from sloppy analysis combined with the herd mentality. I decline to become part of that rush to judgment. Art