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

To: Jerome Wittamer who wrote (1665)	11/18/1997 9:13:00 AM
From: Bobby	Read Replies (1) \| Respond to of 60323

<<To all : the following are exerpts from the 10-Q>> <<If the Company's retail customers are not successful in this market, there could be substantial product returns to the Company. The inability to successfully develop and effectively manage the retail sales channel could have a material adverse effect on the Company's business, financial condition and results of operations. >> Isn't is normal practice to set aside a sum of money for product returns. I think this account appears in the balance sheet and we may find out at the end of their next quarter which I believe is also when they issue their annual report. It is an indication of risk but since it stems from expanding the company's operation into previously unchartered territory and not from its core business, investors may be willing to overlook it. Then again unless substantial revisions are made to earnings estimates and long term growth rates, this stock will not appear attractive to investors who look at S&P reports and First call estimates. Current first call estimates are for long term growth rates of 18%. Ofcouse only one analyst even ventured to guess that. The secondary should provide some momentum and if we get a couple of upgrades/coverage the stock might go back to old levels.