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

To: Ausdauer who wrote (20008)	4/7/2001 8:59:14 AM
From: orkrious	Read Replies (1) \| Respond to of 60323

Aus, the local CompUSA circular today lists a 32MB Memorex CF card for $59.99 less $20 in instant savings and a $10 manufacturers rebate. I don't recall seeing Memorex on the list of licensees. Do you know if SNDK gets royalties from them? CompUSA is essentially giving these things away. Jay

To: Ausdauer who wrote (20008)	4/8/2001 12:29:50 PM
From: John Trader	Respond to of 60323

Aus, Thanks for your comments. I still have a lot to learn about this business, and this thread helps a lot. The biggest overall concern I have right now is the question of which stocks will be the best ones to own at this point - able to hold up as we go down further (hope not, but that seems to be the direction right now), and also able to provide a superior return after the Naz bottoms. In general I am afraid of small caps, as many get bought out or fail during hard times like this, plus there is the flight to quality effect, which tends to favor large caps. I am hoping that Sandisk is one of these stocks that is a good one to own here. Arguments for this are the high cash position, the fact that the company has been around a while (since 88 I think), the 50% insider ownership, and the predictions regarding the growth of this flash business. I also like the fact that the company has weathered at least one bad downturn before (as evidenced by the hit the stock took in 98). But I am still trying to figure things out. By the way, the latest Forbes on the shelf now lists SNDK as one of the 10 best stocks to own here based on the PEG ratio, they report the PEG=.6. They look at several valuation parameters, and have tables for each one. SNDK just makes it in this one table. But after the recent warning the PEG has become about 2.4. Hopefully this does not reflect well on the company going forward (just a severe but temporary decline in earnings). One other attribute of a good stock during a decline is one that is able to have its earnings hold up, which is not the case for SNDK. Microsoft is a good example in the tech area, I am sort of amazed how the earnings are holding up, relative to Intel, for example. That is why the valuation on MSFT is so high now, but this also adds risk to MSFT here, if the numbers don't hold up. The discussion on this thread seems to mostly relate to the technology and the competitive position of Sandisk. I am actually much more interested in the stock performance, which can be a different thing of course. I wonder what the people on this thread feel about the stock at this point, and whether most are long term buy and hold people, or more traders. It has to be an emotional thing to have held this stock during this wild ride over the past three years or so. Anyone who has done that has probably done a lot of research to convince them that this company is likely to do well long term. I am also curious as to what the mood is like inside the company now, and would love to see some insider buying soon. If this stock were to hit a new high within a few years, we would be up 6.4 times from here. That would be certainly be exciting. I wonder if anyone thinks that is possible, and in what timeframe. Regarding Dataplay, I could be wrong, but I don't think that is a real big worry for Sandisk. I am probably not qualified to make a good judgement on that though. I hope this China thing is over real soon, but who knows. If that problem goes away, then just maybe the Naz is real close to its bottom here. Hope it does not go to 1000 like some have suggested. I have way more questions than answers at this point, so I would be interested to hear what kind of logic those on this thread have with regards to the stock. I also wonder if anyone on this thread works at Sandisk. Regards, John