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Strategies & Market Trends : Trading with Jerry Olson(OJ) -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (1345)	1/22/2004 8:10:02 AM
From: Jerry Olson	Read Replies (1) \| Respond to of 1617

Thomas Weisel comments that SanDisk's conservative guidance fueled the after hours sell-off. Specifically, co guided Q1 product revs to decline 5-10% despite the fact that pricing pressure is "benign." Co also guided to 2H gross margin compression although they do not see new players, aggressive pricing, or expect yield issues. In firm's view, mgmt is merely being conservative as they play in a fluid, high-growth market, and used last night's earnings report to reset expectations. It is firm's opinion that the gross margin guidance for 2H04 does not reflect new competitive pressures, but only the uncertainties that new capacity additions from Samsung may have on margins, although they may turn out to have little impact. Thomas Weisel revising estimates lower to match mgmt's guidance; also reducing tgt to $80 from $100 to reflect new 2004 estimate.