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

To: Steve 667 who wrote (2948)	5/10/1998 7:55:00 AM
From: Ausdauer	Respond to of 60323

Sales in Asia have represented a significant percentage of Sandisk's revenues. However, the US is an emerging market for SNDK and it is substantially larger than any foreign market. The CF format is deeply rooted in digital camera manufacturing and I have included a link that lists the compatability of SNDK's products with digital cameras from a variety of manufacturers. I am planning to buy a memory upgrade for my Epson PhotoPC 600 and you can be (damned) sure it will be white with a red logo. Office Depot carries CF cards and an array of digital cameras. sandisk.com We have already expounded on the short-comings of the marketing and sales division. Even the most devout SNDK followers on this link have acknowleged this situation. I have no clue as to whether there is difficulty hiring engineers or whether Motorola is about to cut off supply lines. R&D remains heavily funded and the patent war chest is impressive. There may be a period of time before greater profitability on CF card sales is realized. In the meantime licensing fees and royalty revenues should suffice in keeping the boat afloat.

To: Steve 667 who wrote (2948)	5/10/1998 2:22:00 PM
From: Jerome Wittamer	Read Replies (1) \| Respond to of 60323

Hey Steven, why not copy/paste the entire Annual Report and the last 10Q? Most people on the thread know what investing in hi-tech companies means : it's taking high risks. Technologies evolve rapidly and every other day greater resources are required to feed that continuing process. Those resources are basically financial and human (key personnel). The US job market is known to be the best in decades (28 years) at 4.3% unemployment. The market is not only tight for SanDisk, it is tight for every firm in Silicon Valley and in the US. Therefore they are seeking to recruit additional staff/executives in Asia and Europe, but this proves difficult as a result of immigration laws. I agree there is a case for concern as the cost of retaining and attracting particular individuals increase. The risk of losing key personel is enormous but the prospects at SanDisk are so great that many would be tempted to stay for a couple more years (IMO). As to the sole supplier relationship held with Motorola, I remember they were doing something to remedy the situation, at least partially. These are only two risks among the dozens cited in the 10Q and nobody knows whether any of them will occur. You are right : We MUST keep this in mind but for my part, I'd try not to overemphasize risks and become blind-sighted when the goal is increased number of products, increased number of design-ins, increased sales and royalties, and increased earnings! Look at the 10Q of IOM in 1994, 1995, 1996. So many risks! Now have a look at the rewards for the shareholders during that period! No doubt IOM could have failed had one or two of the risks occurred. They did not. As for SanDisk, we're on the same boat. It could sink or it could reach the shore (of the moon). Over the last months I have tried to show SanDisk from a more distant perspective and put it in a global context. The mobile office market is really increasing exponentially and no matter how well the opportunity is seized, SanDisk will profit from it to a certain extent. In one of my previous posts I showed how while losing market share SanDisk would still become a BIG company in terms of turnover and earnings. Any other opinions most appreciated. Bye for now, Best Regards, Jerome