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

To: ED PLOPA who wrote (4309)	1/14/1999 6:14:00 PM
From: Ausdauer	Read Replies (1) \| Respond to of 60323

Ed, Let's look from a longer term perspective. What do you think earnings will be in 2000? I would like to ask some long term shareholders if the company was generously valued at $27 a share in the Fall of 1997 before the secondary? There is still a lot of cash on the books. And the company will earn over $1.00/share in licensing fees alone this year. That is before a single CF card, OEM delivery, MMC or hard drive leaves the factory. If they break even on R&D and operating costs this year the PE is now 22 13/16. The books look great. Maybe they will even pay out a one time dividend to shareholders?! (Or can they just sit on cash raised during a secondary forever?) Do you think it is fair to use earnings as a valuation given the recent weakness in semi's, the companies lack-luster performance in the prior two quarters and the fact that the projected 1999 earnings are a number somebody pulled out of thin air? What is a fair PE? 20? 30? 50? This company has the potential for explosive growth. It is also a potential acquisition target of SEG, possibly Siemens? Maybe book value would be a better measure of the worth of SNDK? There is just too many damn variables in valuating this issue. I still find $22.00 a reasonable value. I was even dumb enough to buy SNDK at even higher prices last year. Ausdauer (22 13/16)