Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: limtex who wrote (26295)	7/2/2004 10:25:44 PM
From: Sam	Read Replies (1) \| Respond to of 60323

what might he say within the range of possiblities that would be the best thing that he could say (not something exagerated and said purely to create confidence but an honest comment of guidance reflecting the current vision of the next qtr or two)? Neither MU nor STM are getting into the flash business, and there will be NAND shortages for as long as the eye can see. <vbg> Or ---> MU and STM have signed licensing agreements with SNDK, and will pay royalties at an undisclosed rate. Or---> We were wrong last quarter, it looks like our costs will go down even faster than our ASPs in the coming quarters, so our gross margins will expand back to the mid 30s over the next 6 months, which look like they will be barn burners as new markets keep opening up and rapidly expanding. Something like those would do nicely.

To: limtex who wrote (26295)	7/3/2004 10:18:02 AM
From: Art Bechhoefer	Respond to of 60323

Limtex, the only thing that Eli has to say now (I hope) is NOTHING! The financial statement will speak for itself, and so will the clean balance sheet. When the financial statement is issued, then Eli can explain any unexpected problems or improvements. The very fact that he or his team at SanDisk has not found it necessary to issue any new guidance before the release of the latest earnings is in my view a very positive statement that (1) profits are holding up well in the face of price cuts, and (2) demand is so strong that it overcomes any lower profit margins caused by lower retail prices. Art