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

To: Ausdauer who wrote (19440)	3/6/2001 10:17:38 AM
From: Art Bechhoefer	Respond to of 60323

Aus, I think you are 100 percent right. The downgrading going on now is simply a foil to keep prices down while large buyers fill out their portfolios. There was a very significant news item this morning -- a healthy increase in productivity. Productivity gains have been occuring throughout the business expansion, mainly because of adoption of new semiconductor based technology. Without new equipment and related software and other tools, you don't get significant productivity gains--not when unemployment levels remain as low as they are now. One can rightly conclude that the productivity gains suggest continued purchasing of high tech equipment by business customers--a sure sign that this is not a recession but merely a temporary slowdown. I think that institutional investors are coming around to this notion and are once again looking for stocks with solid fundamentals--including little or no debt. If the buying is more selective than it was in the past, then it will be good for stocks such as SNDK. For those who wonder why it isn't better to trade stocks for short term profits, and who may be disappointed in having bought stocks like SNDK at prices considerably above present levels, there is still one investment rule that has never been overturned: Never sell good management, because sooner or later, a good management team will capitalize on whatever opportunities present themselves. Some people may find fault with certain aspects of SNDK management, but the one consistent policy of the company throughout all the turmoil over the last three years has been to maintain positive cash flow with little or no debt. This one factor makes the stock very attractive to investors looking for long term appreciation. Art

To: Ausdauer who wrote (19440)	3/6/2001 10:31:50 AM
From: 5dave22	Respond to of 60323

Hi Aus <Starting to see more semiconductor downgrades despite the devastation all around. Kind of reminds me of all the upgrades that went out when stocks were making new highs nearly every day early in 2000. At that time the buy recommendations were probably just a smoke screen for institutional selling, while now the downgrades (coming after most stocks have already cratered badly) likely represent institutional interest and buying activity.> Hopefully we all learned a very valuable lesson. When EVERY analyst is screaming "BUY!!" - they're looking for high exit points. When EVERY analyst is screaming "SELL!!" - they're looking for lower entry points. Best, Dave

To: Ausdauer who wrote (19440)	3/6/2001 11:20:10 AM
From: limtex	Read Replies (1) \| Respond to of 60323

Aus - I don't think the analysts conspired to push up prices in order to cover selling. I think they probably knew less about the direction of stock prices than we did and thats not very much!!!! I think they suffer from herd behaviour and fort he most part try to do things that their peers are doing. I see your comments about the targets but how about when QCOM earns over $4 per share and SNDK earns over $3 per share accompanied by strong revenue growth? The question is whether you believe that these companies can achieve the earnings figures? Best regards, L