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

To: Steve 667 who wrote (3322)	6/19/1998 6:12:00 AM
From: limtex	Respond to of 60323

Steve and all - So far as the way other high tech companies do things by ramping the stock the day before and getting out wholesale hours before the announcement lets leave that to the SEC. They will get tot the bottom of it very quickly. CAN WE ALL PLEASE PHONE THE SEC TODAY AND GET THEM GOING. This announcement is simply the worst I have ever seen except for one announcing bankruptcy. Even PTEK this week said OK they made a loss but the future looked OK. This announcement reduces hope to nil. Low bacblog means no orders for product doesn't it? Visibility in to third quarter continues to be limited means that the business is getting worse. Seems to me the following:- 1. The market in CF is red hot. All the fugures indicate that sales of CF are going to double in $ terms and that means more than double in unit terms. 2. There wasn't much of a market in Asia lastyear since the overall market wasn't that big and in any case Japan has been in recession for years not days. 3. CF has a material component of its components paid for in Yen. That should have helped margins. 4. We had 60% of the market -- we had all the main deals with Kodak and others - - we had the most advanced technology - - - we had royalty and patent income and now along comes half a dozen competitors and start selling into the market and just pick up all the growth and get along in business like a house on fire without all the apparent benefits that I list here. How Come? 5. It is clear that so far as SNDK is concerned CF is no longer a business. It might be a profitable for Viking and Lexar and others but not for SNDK. 6. Probalby the same pattern will repeat itself for the MMC card in a few months if it ever sells in reasonable quantities. 7. Since it can no longer make a profit then other than enriching Eli, Leon and others on the board this company has no economic reason to exist. I wish someone could please tell me otherwise after reading that announcement. L

To: Steve 667 who wrote (3322)	6/19/1998 6:56:00 AM
From: Jerome Wittamer	Read Replies (2) \| Respond to of 60323

REQUIEM for SANDISK Steve, I do respect your opinion but mine diverges from yours : If you know the market and how it behaves then you should know that when a stock rallies +40% in 3 days it must breath and consolidate to create a new base. Such a momentum is hardly sustainable and is rarely sustained. Maybe it's not Acceptable or Normal to correct 15% but at least : THAT'S THE WAY IT IS. You can not tell the market is wrong. The market is always right. Not fundamentaly of course. Anyway, I can understand your anger since loosing money is never fun. What will I say to my friends and familly who trust me and see their money burnt in APSG, SMOD, SNDK ? Hi-tech is a risky game and we all know it. The risk/reward ratio must always remind you that there are two ways to go : Up and Down. And 'up' is not the paradigm. If you accept I will give you some advice : buy European companies or if you want to invest in the US, invest in growth sectors that are purely domestic and immune to Asia : I like IFCI, US hi-tech play which has no Asia exposure whatsoever. As for SanDisk, I have come to the conclusion that limtex has perfectly understood the reality. Ausdauer brought new light on this company a few weeks ago. These doom prospects were my fear and are now tangible : CF is not profitable, MMC will not be any different. There are bigger players out there who waited for CF to establish itself and now they are killing SanDisk. Story repeats itself. Get out and find something else. To ALL : this was a nice story, nice people, nice prospects, then "$ŠF!„œS@ " R.I.P. Now end of story. Tissues anyone? PS this reminds me of the end of the Titanic. Amazingly similar. As for quote.com, I join you in advising its use. I use it everyday to make my trades and enjoy it. It's a wonderfull tool/toy. It does work with IE 3.02 and up.