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

To: john david martin who wrote (1382)	11/8/1997 11:57:00 AM
From: Sam	Respond to of 60323

An aside to consider: when SNDK gets their money to invest in new plant, all of the devaluations going on in SE Asia ought to make that new money go much further than it would have just a couple of months ago (assuming as I do that their production facilities will be built in the Far East, as so many semiconductor facilities are). That said, if the market takes a serious dive, esp. if tech stocks continue their swoon, then SNDK will get clipped pretty well. High PE, revenue burst still too far in the future. Could get back to low 20s after the offering (probably the lead offering brokerages will support it until then, and for a little while after so that they don't piss off the buyers too much) if market conditions are bad. But that would be a wonderful buying opportunity for those who are willing to wait for a year or two.

To: john david martin who wrote (1382)	11/8/1997 12:20:00 PM
From: JJB	Read Replies (3) \| Respond to of 60323

Kodak lost what $600,000,000 primarily on digital imaging last year. They continue to invest heavily (perhaps not wisely) because they see their future here. The fact SNDK makes money at all should not be understated. Canon, Minolta, Nikon, Sony, have spent billions $ and are not going to stop for a bear market. SNDK has strategic alliances not only with the user base Kodak (largest film company), Canon (largest camera company) and others and on the manufacturing base NEC, Samsung, Toshiba. Japan Inc. isn't going out of business especially in an area of core competency (electronics and imaging). There has been a lot criticism concerning the CEO cautious comments. I find that refreshing because it is tough out there. Hopefully this is also a future litigation repellant to short term momentum traders establishing a class action against the company (which in reality are the long-term holders). My opinions only jjb