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

To: broozer who wrote (26970)	11/17/2004 2:35:22 PM
From: Pam	Read Replies (1) \| Respond to of 60323

Hi Broozer, I agree, Sandisk has not been generating enough FCF's and will need to come back to capital markets to raise more funds either in 05 or 06. <OPAT (@ 37% tax) + depr - capex > Your formula above is basically correct except you have to subtract Net Increases in W/Capital also. There are some more minor adjustments also but could be ignored. -Pam

To: broozer who wrote (26970)	11/17/2004 2:42:42 PM
From: limtex	Read Replies (2) \| Respond to of 60323

Come to the market for more cash? Are you kidding? Again for what? What is the point of spending $1bn on a fab if all that results is simply more brutal price cuts with no end in sight. The market must have got a real sense of this A/H on earnings day resulting in an $8 haircut. I don't suppose anyone has any idea what the plan is to cope with all out dumping by competitors? If this margin and revenue pressure keeps up then the stock is going to become a favourite short target. Somone must have an idea of how spending so much cash on yet more production actually makes any sense. Surely there must be a strategy? Best, L