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

To: Robert Douglas who wrote (27195)	1/4/2005 9:14:39 AM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 60323

Re: Shorting SNDK. It's interesting to note that in the period from Nov. 15 to Dec. 15, the short position on SNDK dropped significantly but went up for LEXR. I mention this contrast because the views expressed by Bear Stearns may apply more to Lexar than to SanDisk. Why? It appears that pricing pressures are more harmful to those companies that have to pay royalties on some of their product, as does Lexar. In other words, SanDisk may have just enough royalty generating patents to survive in a period of price cutting. The companies paying royalties may find profit margins too slim and may eventually go out of business or be acquired. This consolidation so far has not begun in the flash memory business, but I expect it will be a feature this year. Note that one effect of consolidation is to reduce excess supply while gaining access to a particular firm's customers. Art

To: Robert Douglas who wrote (27195)	1/4/2005 2:23:45 PM
From: etchmeister	Respond to of 60323

BTW Dramexchange now publishes contract pricing for flash; it might be a low hanging fruit to check pricing every day and dump data into spreadsheet to create your own price trends rather depending on spotty reports from the financial community;