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

To: Sam Citron who wrote (27097)	12/6/2004 1:50:14 PM
From: broozer	Read Replies (1) \| Respond to of 60323

Sam - Good question....I am waiting for a price recovery to get rid of it. In the meantime, I have been writing covered calls. My cost basis is $27.50. I see 2005 and 06 as very tough years fo the flash industry due to the tidal wave of supply coming online. I believe that flash will become like the hard disk drive and DRAM industries. These are reasons why SNDK trades at such a low multiple to earnings and sales. The market is foward looking and sees overcapacity in the flash market. I believe there is a very healthly demand for flash-based products but not great enough to overcome the additional supply hitting the marketplace. You are already seeing evidence of this right now (512M SD SNDK card on AMZN for $30 last week, it has since gone up, and 1G SD LEXR card for $50) and the additional supply hasn't even really started. Maybe I'll be wrong, but the history of the DRAM and HDD industries are very helpful in evaluating the flash industry. Best, Parkite