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

To: Rocky Reid who wrote (18991)	2/8/2001 8:27:30 PM
From: Art Bechhoefer	Respond to of 60323

Rocky, I don't do any technical analysis, so I can't evaluate the charts. I do fundamental analysis, and unless I see some real fundamental changes (e.g., management quality, patent validity, loss of proprietary technology, or the main technology becoming outmoded by some newer, cheaper substitute), I generally stay with the stock. So far, I have seen only one thing that looks potentially worrisome--the poorly performing Japanese economy, which just reported a downward revision in its gross domestic product, giving Japan more than 10 years of sub par performance. Since Japan is the world's second largest economy, and a major market for SNDK products, this could hurt badly. I don't see the current economic slowdown in the U.S. as anywhere near as serious as Japan, and as for Europe, there are signs that economic growth is improving there. As for the patents themselves, and all the cross licensing agreements, and whether those agreements mean that royalties are no longer a significant factor in SNDK earnings, those issues would certainly be important in evaluating future earnings. But I haven't heard anything from management on these issues, despite some inquiries made almost two weeks ago. Beyond these issues, as related to consumer items, is the potential from the personal health information card being developed with Kaneb services. This would not be a consumer item, and for that reason demand would be more stable. It has major potential, but the company hasn't updated me on this issue either. Art