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

To: limtex who wrote (21200)	11/16/2001 9:52:14 AM
From: Art Bechhoefer	Respond to of 60323

The cash drain will be hard to predict, since we don't know how well sales are going, and whether all the excess inventory has been accounted for. However, we do know that softer business conditions have resulted in FEWER outlays on new plant construction in Israel (the project involving Tower Semiconductor). We also know that construction costs are pretty much finished for the Manassas, VA plant, and that start-up costs are probably now declining. Thus, the recent outlays for new plant and start-up costs should be down. But we also know the margins on existing production are very slim. If the company history is any guide, I think the cash flow will remain positive, and SNDK will remain one of the very few companies that isn't forced to get more capital by diluting its shares or by begging in the capital markets for reasonably low interest rate loans. Anyone who is discouraged by the fortunes of this segment of the high technology sector should remember that SNDK has just about the best, most conservative financial situation of any company in the group. Art