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


To: William Nelson who wrote (2952)5/11/1998 7:27:00 AM
From: dumbmoney  Read Replies (2) | Respond to of 60323
 
The analysts seem unduly conservative in their estimates
for sndk...any idea what they might be thinking?


Analysts are sheep. They upgrade overvalued companies and downgrade undervalued companies.

Here's some interesting arithmatic. SNDK reported royalty revenue last Q of $8.7 million, an increase of 24% over the last Q. Let's assume that royalty rev grows at 10% per Q for the next 4 Qs:

9.57 + 10.52 + 11.58 + 12.74 = 44.41

Now tax that at 35% and you have 28.87, or $1.10/share.