Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Sam who wrote (35380)	2/20/2007 10:15:18 PM
From: Pam	Respond to of 60323

A few days ago, I bought a Sandisk 1gb Cruzer for under $15. They were selling 2gb drives for under $25. Kingston is selling 4gb drives for under $25 (with rebates), and 2 1gb drive bundles for under $5! People are getting rid of this stuff as quickly as they can. Shake out city, big time! The real question is if vendors are clearing their inventories at lower prices because of upcoming price cuts or the demand has temporarily stalled and they are trying to stoke the demand? Also, if these actions are taking away sales from future Q's? You must have noticed, some of the Taiwanese vendors are selling higher GB products (4GB, 8GB and higher) at very lucrative prices and there are good reasons for this. They can make their rev targets at much lower unit sales and they have a better chance of NOT losing money in case Sandisk decides to flood the market at low prices!

To: Sam who wrote (35380)	2/22/2007 7:38:58 AM
From: 2MAR$	Read Replies (3) \| Respond to of 60323

SanDisk ($39) downgraded to Hold at WR Hambrecht (39.85 ) : WR Hambrecht downgrades SNDK to Hold from Buy saying in recent days they have learned that a crack in the IP story has occurred, as Samsung has found a way to significantly reduce its royalty payments to SanDisk on its finished S.D cards that it is currently shipping. The firm says their analysis is that this step by Samsung is to put at risk ~15% of SanDisk royalty revs as early as Q2:07, as Samsung is no longer willing to pay the 8% royalty rate to SanDisk on N.A.N.D M.L.C S.D cards. Due to the risk in the royalty stream and the lack of pricing leverage in the next few quarters, the firm does not anticipate positive catalysts in the stock in the near future.