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

To: Ausdauer who wrote (25624)	4/16/2004 1:43:05 PM
From: slacker711	Read Replies (1) \| Respond to of 60323

Now maybe they will have enough flash for my Titanium USB flash drive. As long as they build my Cruzer Micro first....I wouldnt want to jump ship and buy a Lexar ;-). Slacker

To: Ausdauer who wrote (25624)	4/17/2004 1:48:26 PM
From: slacker711	Read Replies (2) \| Respond to of 60323

Some random notes from the Samsung CC....as always, I would recommend listening to the call if you want a full review. At times, some of the numbers can be a little hard to understand.....so if any of these numbers seem way out of line, please let me know. samsung.com Nand Bit Growth ASP (QoQ) Q1 '04 21% Flat Q2 (E) 31% Flat to slightly down CY '04 184% -30% to -35% - For the market as a whole, they expect bit growth to be about 100% for the year. - They are producing 1 gigabit chips at a 9:1 ratio to 2 gigabit chips. They expect this ratio to shift to 2:1 favoring the 2 gigabit chips by the end of the year. This will be a result of die shrink (and not MLC). They are focusing on high density chips for MLC....should have a 8 gigabit MLC chip by the end of the year. - Samsung isnt really effected much by the drop in spot prices for flash since most of their product goes to OEM customers. - An analyst asked specifically what Samsung's response would be to the 20% price cut by Sandisk. The response was that they see a substantial gap between their price and the retail price and they would like to reduce this as soon as possible (watch out Lexar!). Interesting to see the contrast between Samsung's comments now and those given during the first quarter CC. They were looking for internal bit growth of between 180% and 200% (now 184%). They also announced expectations for a 40% drop in ASP's (now 30%-35%). wrhambrecht.com Overall, it looks like the pricing/capacity environment is actually getting better for Sandisk. In light of that, I think you can only accept Sandisk's justification for their price cut. There had to be a strategic reason because it doesnt seem to be a competitive response to the current market. Slacker

To: Ausdauer who wrote (25624)	4/17/2004 8:18:47 PM
From: sdpjf	Respond to of 60323

Hi Aus. I have been steadfast in my belief that the stars and planets would all fall in line for SanDisk. I felt very confident that, if they had a very good first quarter we would be off to the races. It seems strange that the Company is being punished for their success while others are rewarded for laying off people and restructuring. Restructuring means that "We are all messed up and need to start over again. Eli has been preaching about the price-demand-revenue-profit equation since I have been involved but it seems as though no one gets it. I often think about when I worked for a family member who owned a watering hole,(Forty years ago.) This joint had a capacity of about 52 people and the booze was priced at fifty cent well drinks and twenty five cents for a draft beer. I noted to by brother-in-law on one night when things were running as usual, four deep at the bar, two cocktail waitresses, and 52 capacity be dammed, that the upscale place down the street was selling their booze for $1.00 and bear for $75 cents. He asked how many people were in the bar. I will never forget my answer!! Stay the course for one day we will be looking at folks in the rear-view mirror. best to everyone Peter