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

To: Jason Rooks who wrote (2966)	5/12/1998 10:25:00 AM
From: Jerome Wittamer	Read Replies (2) \| Respond to of 60323

BREAKING NEWS : Flash Component Prices Plunge ! This could be a reason for the recent drop, depending on the exposure of SanDisk at this point (see inventory, which is kept low due to weak visibility) we will have a pretty clear picture of the impact on earnings result in a few days when the company answers our question. A competitor: M-Systems, just lowered the price of its flash cards FlashLite Series II to $36.00 for 4MB!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! What's the price of a comparable SDNK card? (I'm at the office) Anyone volonteer to ask QUICKLY the company of the impact of plunging prices on product net margins? My take on this is the following : products are due to fly off the shelves just as quickly as they arrive on them, total unit shipments could skyrocket, so could revenues and earnings. The only thing we have to look at is : does SanDisk benefit directly and immediately from these falling flash component prices? =>Where do they buy them, how long in advance? Do they produce some of them? Which ones, what impact on earnings? It could thus be a big short-term and long-term positive or a short term negative. Thank you very much in advance, Jerome