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

To: Reseller who wrote (19145)	2/14/2001 7:24:03 AM
From: Road Walker	Read Replies (2) \| Respond to of 60323

Reseller, re: "There are so many reasons why inventory isn't in the right place at the right time that conclusions based on out of stock conditions really can't be drawn." One conclusion can be drawn, and that is that SanDisk is losing sales on a daily basis. Our sample is small, and unfair to project over Best Buy's 400 stores or Office Depot's 800 stores, but on the surface it looks like some operational problem is causing lost sales at a very challenging time for SanDisk revenue and earnings (and stock price). Ingram is a distributor, and those low inventory levels suggest that they don't service the major retailers. But thanks for the information, it's reassuring to see that they are in stock on all the best selling cards. What segment is Ingram's customer for CF? And you are right, the inventory issue could mean a few different things. Best Buy and Office Depot may have changed to another supplier, and are waiting until the stock comes in before changing the bin labels. The assistant buyers at the respective companies may have accidentally disabled the SKU's, so the system can't order. The product sales could be accelerating so fast that the inventory/ordering system can't keep up. My 25 years of experience selling to mass retailers suggests to me that SanDisk is having a shipping problem. I hope I'm wrong. John