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

To: KeepItSimple who wrote (25083)	2/23/2004 2:46:26 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

The latest available data on increase in demand for NAND products shows that earlier estimates were too low. The new guidance issued by QUALCOMM, furthermore, indicates far more demand for camera phones than had been anticipated earlier. Many camera phones use SD or miniSD flash memory. SanDisk, moreover, has recently announced embedded NAND flash for camera phones. Based on higher than previously anticipated sales, much of which go directly to SanDisk or generate royalties, one can anticipate continued strong earnings growth. Yet the current PE remains about 25, well below what one would expect for the robust growth we are now seeing. Market sentiment favors drugs and a number of other stocks over technology at present. Drug stocks consequently are selling at or near their highs for the last 52 weeks. Technology stocks are selling off. There are further worries that the U.S. economy is about to realize the results of reckless government spending, high government debt, and higher state and local taxes to offset huge budget deficits. Thus, it is understandable that some investors want to take profits, especially in technology stocks which, like SanDisk, have done well over the past year. As usual, some people will go with the flow and sell the technology stocks, no matter what their future prospects are, and they'll just as happily buy the drugs, even though the major drug company stocks are at or near their highs. As I've said all along, I place a lot of weight on management quality and a strong balance sheet. It may take awhile for other investors to appreciate these qualities. Art