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


To: Dave who wrote (24687)1/22/2004 5:43:48 PM
From: Charlie Smith  Read Replies (1) | Respond to of 60323
 
Hardly.

SNDK closed today at $59.75. That's under 4X the year-end book value of $15.78 per share.

If SNDK can earn a consistent 15% to 17% on equity over time (an assumption I'm sure you're prepared to contest - an argument for another day), fair value in an environment of 2% inflation should be about 5 times book, or $79.