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

To: Rex Dwyer who wrote (2818)	4/16/1998 1:56:00 AM
From: Jerome Wittamer	Respond to of 60323

Hey Rex and limtex, thanks for the work! I got the results 5 minutes ago when I jumped from my bed at 7:20 a.m. (Paris time) Well it seems as what I had predicted finally comes true. No big suprise. Though I must admit sales and royalty figures are (relatively) pretty high for a 1Q. We know this Co and its management so well now. Yes earnings could have been A LOT better. Dr Eli only realized the minimum required by the Street. But behind this unique figure all BS figures look stronger then ever! Yes Rex!!! Deferred revenue is still high as a mountain. Were we too cautious with our estimates for the year? Dr Eli could prove us very wrong. I totally concur with you when saying we're gonna get blowout 3Q and 4Q earnings. I guess we'd even get some nice numbers early July. Also, IMHO Dr Eli was somehow optimistic compared to 3Q comments. He put out positive things like design in activity,... More later in the day! Jerome

To: Rex Dwyer who wrote (2818)	4/16/1998 2:13:00 PM
From: Jerome Wittamer	Read Replies (2) \| Respond to of 60323

Brief Valuation of SanDisk Corp. as at 15 April 1998 1-the stock is currently valued at $22 2-the company has $4.55 in cash 3-you thus pay $17.45 for a share of the company at this level 4-trailing 12-months EPS are 0.86 5-instantaneous PE is 20,3 6-revenues and earnings growth is 60% 7-high-growth scenario : EPS for the 12-months to come should thus amount to 1.36c if such growth continues 8-low-growth scenario : EPS for the 12-months to come should amount to 1.07c if such growth falls to 25% (which is unlikely) 9-Assuming the market would accept a PE of 20 in the low-growth scenario : we've got a price of $21.5 + $4.55 = $25.95 10-Assuming the market would accept a PE of 40 in the high-growth scenario : we've got a price of $55 + $4.55 = $59.55 That's in 12 months. Remember the stock market is all about anticipation. Not to early though. In any case the stock is pretty cheap at this point but there's also no reason for the stock to be valued above $25 before June has begun. I'd like to see incremental increases in stock value beginning July 1st. Because it's close to my birthday. Conclusion : keep your money invested in something else for the time being and, for ounce, I am not kidding. If you don't know any other investment vehicle, put your money in SanDisk, it is a relatively safe place. If so keep your eyes and ears opened, technology is about change... Any other ideas? Thanks, Jerome