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

To: Sam who wrote (27799)	3/30/2005 10:49:09 AM
From: slacker711	Read Replies (1) \| Respond to of 60323

I think Mr. Market may be waiting for the upcoming report and CC to confirm this. If so, if there aren't any inventory suprises, any margin surprises, any talk of price wars or diminished demand--then we could be setting up for a nice run in April Exactly. It takes a while to recover credibility with the market and Sandisk's October quarter surprised everybody to the downside. JMO, but with the current mood of the overall market and the possibility of Samsung moving DRAM to NAND, none of the analysts are willing to go out on a limb. Take a look at the earnings estimates trends for this quarter and the full year....they have barely moved over the last three months. These estimates are obviously nonsense now, since nobody was predicting flat ASP's for the quarter. finance.yahoo.com Slacker

To: Sam who wrote (27799)	3/30/2005 11:07:53 AM
From: Pam	Read Replies (1) \| Respond to of 60323

Hi Art, Sam, So why do SNDK shares fail to reflect optimism for 2005? Well, there are still risks here and that risk comes from Samsung. If Samsung switches its DRAM lines to Nand production to take advantage of increased demand in the near-term from Shuffle and also because of the fear of losing marketshare to Toshiba/Sandisk once they have ramped-up production at their 300mm plant, chip prices could come down quickly. Eli is aware of this risk and have always said that Samsung is the biggest Nand supplier and he expects that they will be a responsible supplier. If they flood the market to destroy competition they hurt themselves more than others because they are the biggest supplier. But sometimes companies may still do exactly what Eli is expecting they will not and that is the risk here. In any case, I do not think Samsung can make Toshiba/Sandisk go away by flooding the market but they can discourage the newer entrants to shy away from this market by keeping the prices at levels that is not profitable for them to enter. -Pam