To: Ausdauer who wrote (5159 ) 3/22/1999 3:03:00 PM From: Art Bechhoefer Read Replies (1) | Respond to
I wasn't able to get data on the total number of options contracts outstanding on March 19. I also do not do technical analysis, so the issue of whether 25 is the next support level is to me rather unimportant. What is important is (1) the attractiveness of SanDisk products in the marketplace (very attractive, it seems) and (2) the astonishingly strong cash position the company has maintained, despite its rapid growth. I believe what is causing the present downward pressure are analyst comments about reduced anticipated growth in computer sales and sales of related equipment. Given that SanDisk has products that are specialized to higher growth areas in the computer and telecommunications sector (wireless internet access via cell phones or palm computers), I am not worried about the overall condition of the computer sector adversely affecting SanDisk. I look to the fundamentals, which at the moment look very strong. One thing I'd like someone to explain, if possible is the difference in performance characteristics between the flash card and the multimedia card. Why wouldn't someone want to market a digital camera with a 30 mb multimedia card, instead of an equivalent capacity CF? Or, how about a camera with multimedia card, which could store the image and then send it via wired or wireless modem to a host computer? That would be particularly useful for amateur photographers away from home, or for press photographers on assignment. The other factor affecting SanDisk price is the lack of institutional interest. Generally speaking, a relatively small percent of professionally managed funds even cares about companies with market cap under $1 billion. That, to me, is a fortunate circumstance for individual investors interested in long term appreciation.
