Steve,
The guy is blowing smoke. He claims that SNDK is selling at more than 5x book. Well, they have about $1.26b in cash and about 95m diluted shares. There is also $150m in convertible debt, but that is more than balanced by their investments in Flashvision and TSEM foundries, so let's understate book and call it a wash. Cash alone is more than $14/share. Five times cash is $70/share. So he is suggesting that book is about negative $11. Right.
I see Yahoo claims that price to book is 6.23. They are wrong. They also have cash at 9.56/share. This is incorrect too. Here is a cut and paste from their report:
SanDisk Corporation
Condensed Consolidated Balance Sheets
(In thousands)
Dec. 28, Dec. 29,
2003 2002*
----------- ---------
ASSETS (unaudited)
Current Assets:
Cash and cash equivalents $734,479 $220,785
Short-term investments 528,117 235,706
Investment in foundries 36,976 110,069
Accounts receivable, net 184,236 81,086
Inventories 116,896 88,595
Deferred tax asset 70,806 -
Prepaid expenses, other current assets and
tax receivable 53,394 18,489
----------- ---------
Total current assets 1,724,904 754,730
Property and equipment, net 59,470 30,307
Investment in foundries 40,446 24,197
Investment in FlashVision 144,616 142,825
Deferred tax asset 7,927 6,922
Deposits and other non-current assets 46,151 14,598
----------- ---------
Total Assets $2,023,514 $973,579
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Accounts payable $88,737 $28,294
Accounts payable to related parties 45,013 26,349
Accrued payroll and related expenses 28,233 11,690
Income taxes payable 37,254 15,978
Deferred tax liability - 6,922
Research and development liability, related
party 11,800 10,507
Other accrued liabilities 36,661 26,780
Deferred income on shipments to distributors
and retailers and deferred revenue 99,136 43,760
----------- ---------
Total current liabilities 346,834 170,280
Convertible subordinated notes payable 150,000 150,000
Deferred revenue and other non-current
liabilities 25,992 25,579
----------- ---------
Total Liabilities 522,826 345,859
Commitments and contingencies
Stockholders' Equity:
Preferred stock - -
Common stock 1,207,958 585,968
Retained earnings 253,624 84,765
Accumulated other comprehensive income (loss) 39,106 (43,013)
----------- ---------
Total stockholders' equity 1,500,688 627,720
Total Liabilities and Stockholders'
Equity $2,023,514 $973,579
=========== =========
*Information derived from the audited Consolidated Financial Statements.
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