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

To: JH who wrote (19604)	3/14/2001 9:39:49 AM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

JH, in comparing the price changes of SNDK and CSCO, remember that a large company with considerable ownership by institutions and funds will usually recover more quickly than a smaller cap company with only modest institutional holdings. Although we probably have to assume that much of the production of flash memories by SNDK is now a commodity business, the saving grace, as you point out, is that the business is growing rapidly. In this connection, it is interesting to note the latest efforts in digital imaging by Kodak. The company is running advertising inserts in the Wall Street Journal today, explaining its strategy, and the local Rochester paper contained an article giving more detail. Among the most interesting aspects is Kodak's proposed $25+ billion investment in flat panel displays--a technology that builds on Kodak's expertise in coatings on plastic. Its flat panel display coats the plastic with electrically sensitive material, giving a brighter display, with lower power requirements than either an LCD or plasma display. This is probably one reason why Olympus and Kodak entered into a cross licensing agreement. Equally interesting is that Kodak is not spending one penny on digital image storage technology; i.e., use of flash memory or other technology for preserving an image. For a company whose main business is storing photographic images on film and paper, this is indeed a peculiar, but not unexpected strategy by a company just waking up to the potential of digital. Art