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

To: Dan Guinan who wrote (3527)	7/20/1998 5:40:00 AM
From: Craig Freeman	Read Replies (1) \| Respond to of 60323

Dan, I too bought at around 28 and averaged in the low twenties. I went on to buy more in the high teens and then sell virtually all of it for a huge loss. The problem is that SNDK's margins are negative if you subtract royalty income. If SNDK does manage to significantly increase their CF sales, at current costs and pricing SNDK could end up reporting a loss. If and when the Lexar suit is settled favorably, SNDK could be in a position to earn big profits. But, until then, it is just another highly manipulated, speculative stock. Craig

To: Dan Guinan who wrote (3527)	7/20/1998 11:48:00 AM
From: Ausdauer	Read Replies (2) \| Respond to of 60323

Dan, I quess the label of "one trick pony" is not accurate for SNDK. You can certainly make a compelling argument based on "potential applications" for SDNK product line. The fact of the matter is that some of these areas of "potential" are already on the shelves of most retail computer and camera outlets. There is much less speculation for SNDK regarding whether they will garner design wins, whether the products actually work and whether there is a market demand. SNDK will rise as consumer awareness and acceptance kick in. I understand there is a 160 MB CF card in the works. That is simply awesome. My personal opinion is that the computer retailers are going to be selling the bulk of digital cameras and removable memory. The average person visiting Ritz camera, for example, may not have alot of computer experience. People at CompUSA and the like are likely to be versed in computers and possibly be designing web pages or the like. They are less likely to balk at a $500 or $600 computer peripheral like a digital camera. It is easy to fall in love with SanDisk and I am a victim of the same. Still I remain lying in wait for the stock to take flight once again. P.S. I agree with your ysis of the valuation of the stock and disagree that the royalty revenues are a facade for the company's lack of profitability in the CompactFlash market for all the reasons I mentioned previously. Would you mind commenting how their cash and short term equivalents managed to increase $6 or 7 million in one quarter with only $0.04 per share in earnings? Maybe they invested some of their cash in Viagra futures?!