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

To: Ausdauer who wrote (3458)	7/3/1998 8:30:00 AM
From: limtex	Read Replies (1) \| Respond to of 60323

Aus - I think you're right. 1. D-photogrphy is addictive at least at first. 2. I believe the sales of Flash Cards are taking off - in Europe and the US. The problem is that Eli's bombshell seemed to me to say: 1. Margins have effectively erroded materially due to much heaiver than expected competition. 2. New D-Cameras with mulit pixel CCDs have been late being delivered to the retail stores. 3. D-Cameras that don't even use CF are hitting them. 4. Japan has two problems namely they aren't selling CF as they would have liked and on top of that they put up thier very own distribution business in Japan and that has problems too. 5. What about the rest of Asia ? he says nothing. Does it still exist? Has Lexar and Viking taken over there too? 6. The massive fall of the Yen should in my view after reading the last 10Q, have reduced the cost of a material percentage of the component costs of the CF. But Eli doesn't say anything at all about that ...not a word did we hear ..only how tough margins and competition are???? 7. We have had over six months of announcements drip by drip. They all seemed to me to be quite good. Maybe someone would like to do a list so that we could see in writing that this constant feeding of relatively good announcements in its full glory. We even had one on the week of the bombshell form Phillips as I remember it But all the whole lot didn't combine to make for one hopeful comment from Eli..... not one. 8. And of the secondary. I thought that the money was needed to build a mill or a plant or something. That was supposed to reduce costs. Looks a little late for that now becuase even if they get over Lexar there now appears a 300lb gorilla called Hitachi who wants this littl;e pie for himself and he can manufacture cheap and he can sell below costs and presumably he can do all of that in Yen which should be even more fun. Maybe he has to pay some royalties to SNDK and maybe he doesn't. If he does it still reduces our market share and revenues and sooner o r later Hitachi will buy someone ( maybe us but maybe not) and then research their way into a new strategy bypassing us. 9. Not only couldn't he find one thing positive about the future ( assuming he believes the future to hold something positive) but he announces that "backlog continues to be low" and that Q3 is still difficult to see. Thats not emotional at least not in my view its what we were told for the last six months.