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

To: clix who wrote (27984)	4/26/2005 5:45:27 PM
From: clix	Read Replies (1) \| Respond to of 60323

I didn't get any responses when I asked about Flashvision costs. Here is one more try. Sandisk has said that it will have to spend $1.4 billion through 2006 and, possibly, $2 billion through 2007. My questions are: 1. Can this really be thought of as "investmnet"? I don't think Sandisk is buying any real estate -- just equipment that will become obsolete. Isn't this, ultimately, part of the cost of goods? 2. Nunmbers have been mentioned (see the post this is a reply to) about parts of these payments that will be off balance sheet. Does anyone understand this well enough to predict what, if any, portion of these payments will appear as COGS? And when? 3. It would appear that, given these numbers, most of the current cash on the balance sheet is spoken for. True or false? Am I missing something here, or is this the elephant in the room?