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

To: Jim Greif who wrote (24753)	1/26/2004 9:25:49 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

Jim, the Motley Fool article is interesting, especially because it misuses data but still comes up with an optimistic view of future earnings. The only figure on margins that makes sense for comparison purposes is gross margins (before taxes). One reason for this is that the tax rate affects net margins, and we know the tax rate on SanDisk has been going up as it gets rid of all its losses, such as drops in value of shares that it holds. Also the point about "callable notes" (whatever that is) seems to ignore the fact that diluted shares in the financial statment already includes dilution from "callable notes." The MF has a curious way of reaching a conclusion, but I think the conclusion may be somewhere in the ball park, despite the projection of only 9% earnings growth. It will probably be closer to 50 percent, but then, I'm just relying on the guidance provided by SanDisk. Art