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

To: Dave who wrote (28050)	4/26/2005 9:28:44 PM
From: Pam	Read Replies (1) \| Respond to of 60323

Hi Dave, I do somewhat endorse the P/S ratio for tech stocks especially when you want to buy "beaten down" tech. However, I believe a more robust metric is the EV/S or EV/R. Terminology aside, I believe EV or Enterprise Value is more robust since it takes into account all capital, i.e. Debt and Equity, invested in the company and subtracts cash. One noted value investor whose name escapes me at the present time believes in buying solid tech companies having an EV/R < .5. Of course, his "other" criteria is that the company has little debt and plenty of cash to ride out (so to speak) any downturn in the industry. To meet this noted value investor's requirement, SNDK stock will have to roughly fall below $11.50. How realistic is this in SNDK's case in the coming 12-24 months? I guess, SNDK meets the "other" criteria for now. -Pam