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

To: Road Walker who wrote (20046)	4/10/2001 4:21:14 PM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 60323

John, thanks for the link to the AMD thread and the SSB comments on flash memory. Everyone on this thread should realize that when it comes to flash memory, simply lowering the price of the chip doesn't necessarily mean that demand is weakening. This is a relatively new technology, and lower prices routinely follow Moore's Law. In other words, as the technology improves, prices fall just like they have done with DRAMs and microprocessors. No analyst has offered any data on profit margins related to price cuts. If the technology is improving, then profit margins will remain high. If technology is not improving materially, and if there is nothing to be gained from the learning curve that always goes with manufacturing of a new product, and if price cuts reflect ONLY a lower demand, then SSB and other similar analysts are correct. Frankly, I think they're dead wrong, and the data they've provided do not in any way argue in favor of their position. You can depend on these ill-trained, inexperienced analysts to provide only the most simplistic, least accurate opinions. I don't know why their firms bother paying them. Art