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

To: Craig Freeman who wrote (4597)	1/30/1999 12:35:00 PM
From: Bill Zeman	Respond to of 60323

OFF TOPIC Craig, the analysts have acted in typical analyst fashion on this one. IDTC pre-announced about 2 weeks ago that they were gonna report .03 instead of .13 for the most recent quarter. The reason was that they had delays in deploying their network and had to use more leased lines and the spot market than they had anticipated. The reason for the delays was vendor shortfalls and internal operations going too slow because they were so swamped with new business. IDTC stated that they should have most of their calls going through their own network in 2 to 3 quarters. So you see it is a temporary problem only. All their burgeoning internet projects also delayed network deployment, and this problem is being solved by hiring more good top level mgmt and the emminent IPO/spin-off. When the first analyst downgraded, (BT Alex Brown b4 the pre announcement), IDTC was at 18ish. This knocked it down to the 14-15 level. Then came the pre announcement and more downgrades and the stock fell to 9 1/2-10. The next day it gapped up to 11ish and hasn't really looked back since, flying all the way back up to current levels at 15ish. Most of this move caused by the excitement about the new portal and the near internet IPO/spin-off. So you see, the analysts hurt a lot of investors by getting them to sell below 15 in a panic about a short term problem. They were late getting people out of the stock and they will be late getting them back in. Typical! Even if IDTC does fall back from here it would just be an excellent buying opportunity. With excellent fundamentals, book value of 10 1/2, and $6.50/share in cash, I see very limited downside from here. Bill Z