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

To: Dave who wrote (27091)	12/6/2004 10:54:43 AM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

Dave and Sam--The possibility of a takeover is governed not necessarily by the commodity nature of the business but includes things like brand name, retail presence, and the value of the assets shown on the books. Currently SanDisk has a relatively low book value, especially when looked at in euros, pound sterling, or yen. This makes the assets look cheap to an acquirer with appreciating currency, and at a time when interest rates in those currencies remain at abnormally low levels. You can also measure the value in terms of the relationship between annual sales and market capitalization. Normally a company like SanDisk would be fairly valued when sales are somewhere between six and ten times market cap. By this measure, SanDisk is cheap, regardless of whether a buyer of its shares has dollars, yen, euros, or pounds. Art