Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: KeepItSimple who wrote (24121)	12/7/2003 5:53:54 AM
From: Sam	Respond to of 60323

From your remarks, you obviously have not followed either this board or this stock very long. Art isn't a rookie, is taking, as he puts it, a "calculated risk" in which he knows his risk parameters. He has been posting on this board a long time. And the management of this company doesn't say things in "desperation." They haven't necessarily always done the right thing in the past, but this is a tough business, and they've managed to steer through the rocky currents fairly well. Their statement is just responding to what I imagine have been a fair number of calls and questions about this sharp drop in their stock--nothing wrong with that, as long as what they say is true. This isn't another Enron situation where they are making up numbers and even whole divisions and fake business plans. They are a legitimate group. Just because they have had a large run doesn't mean that they are a bogus business. Their market cap of about 5x revenues FY03 (which ends this month) revenues is high but it is far from outlandish given their strong balance sheet and their general business prospects, IMHO. Estimates for next year range between $1.5 and $1.7b, which means they are about 3x near year's revenues, not high at all given their prospects--as long as Samsung doesn't do a price war, which is the major threat to the business, IMO--unit growth in the business will happen, the only question is will supply be managed properly and will someone like Samsung think they can take over the market with a price war.