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

To: Ausdauer who wrote (27194)	1/3/2005 10:47:02 AM
From: Robert Douglas	Read Replies (3) \| Respond to of 60323

From Bear Stearns this morning: On the short side our top idea is SNDK. We maintain our view that the company’s guidance for 4Q04 is aggressive, and we expect to see further pricing pressure in 1Q05 as demand for consumer electronics undergoes a seasonal slowdown. We have noted that prices have been coming off at retailers in the last few weeks, with increased levels of discounts and rebates, and believe these price reductions are in response to weaker than expected sell through during 4Q04. With regards to the current pricing environment in the spot market, NAND pricing has remained under pressure in recent weeks, with prices down 5%-10% in the month of December. We believe this pricing pressure in the spot market is indicative of the pricing pressure to come in 1Q05 at the retail level. Our 4Q revenue estimate for SanDisk is $469M (up 15% QoQ), as compared to the guidance range of $500-$530M (up 26% QoQ at the mid-point).