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

To: Ausdauer who wrote (25361)	3/15/2004 6:59:16 PM
From: Pam	Respond to of 60323

Aus, I agree they have to be a significant player in the manufacture of NAND chips, they can't be be just a reseller of chips made by SNDK. All I am saying is the timing of when that capacity (from the new plant) comes to the market will be critical. I like the model that SNDK currently has- about 70% from captive sources and 30% from non-captive sources. SNDK should try not to be in a situation where they can't sell what FlashVision produces (their share of output). This way SNDK margins will be high enough and even though buying the chips from non-captive lowers the margin to some extent. In the case of over-capacity this is the best model as they can always stop buying from non-captive sources and have the highest GM margin company in this business during those tough times! Pam