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

To: Steve 667 who wrote (3032)	5/20/1998 6:22:00 PM
From: Jason Rooks	Read Replies (2) \| Respond to of 60323

I do not think that the digital film news is driving down the stock because the product is not even in production yet or available. Plus, the price of $1000 is way to high. I do not recall if the PR regarding IOM's click caused the price in SNDK to drop, but I do not think either of those products are real competitors until they are available, proven products, and cost competitive. The competitor for CF is smartmedia. I simply believe something else is at work here. Could be the drop in flash prices which will hurt SNDK's earnings. But, as an owner of a dig. camera, if and when I can purchase the 8 or 10 mb flash card for under $100, I'll grab one. Until, then, the cards are too expansive. Thus, I see the falling prices as a benefit to overall sales, even if the margins are lower.

To: Steve 667 who wrote (3032)	5/20/1998 9:15:00 PM
From: Craig Freeman	Read Replies (1) \| Respond to of 60323

Steve, if you mean IRSN's "digital film", at around $1,000 for 30 pics, they will be lucky to capture 5% of the market. Digital camera sales are expected to triple this year so a 5% loss is not very "big". Craig

To: Steve 667 who wrote (3032)	5/20/1998 10:24:00 PM
From: James Choi	Respond to of 60323

>Is this digital film going to use SANDISK flash memory? I do not know, but it has to use FlashMemory to store whatever image it recorded. It will be either SanDisk or some company that pays royalty to SanDisk. If a competitor for this digital film pops up, it may opt SanDisk as their storage choice. The key is SanDisk is holding 70% of market share and a lion share of the patents. Regardless of who makes what, as long as the flash memory application increases explosively, money will flow to SanDisk's direction. I don't think there are many fund managers who understand the impact of digital imaging fully. If you do not need the money in a few months, this collective blindness is a blessing because it allows us to accumulate the shares. The alternative to this situation is like the Amazon.com situation. You know it is a good idea, but everyone else thought so well before you. It shot up so high that you don't want to touch it. Someone will write this period as "Even though it was clear to everyone that digital photography was here to stay, it took months for SanDisk to take off, providing everyone an opportunity to get in for the ride." What you won't read on those books is "It remained a bargain so long that many people got frustrated, cursed up and down, wondered aloud, complained endlessly, and finally gave up and jumped off, missing the opportunity that only the birth of a new industry can provide." Having said that, it looks like someone knows that I doubled the position. SanDisk fell even further. Damn! Hey you, it was a nice try. But you won't shake me off. Give up and let it take it natural course upward. Thank you. James Choi