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

To: Ausdauer who wrote (5403)	4/14/1999 4:45:00 PM
From: Jason Rooks	Read Replies (1) \| Respond to of 60323

Harari also stated, ''Competition continues to be strong and we expect product gross margins to remain under pressure in the second quarter of 1999 due to anticipated declines in average selling prices. Recent bookings have not been as strong as their record pace in the first quarter. We continue to rely on ''turns business'' for the majority of our second quarter revenues, which are projected to exceed slightly the level achieved in the first quarter. The new 128Mbit based high capacity products and the building momentum for MultiMediaCard design wins are setting the foundation for a strong new product cycle for SanDisk in the second half of this year. We believe SanDisk is exceptionally well positioned to be the leader in our target markets and are bullish about our future business prospects.''

To: Ausdauer who wrote (5403)	4/14/1999 9:49:00 PM
From: Sam	Read Replies (1) \| Respond to of 60323

Weighing in. It is a pretty tough call on where its going tomorrow or this week. I think it was a really good report. But Eli's forward looking comments were mixed. Personally, I think they were very bullish, but not so much so for next quarter, which is most likely where the money will go. So I won't be surprised at all if there is weakness in the stock, and it goes back to the teens. Since I haven't finished building my position in this company, I would personally welcome that, in fact the lower the better. I expect to be buying a lot of SNDK sometime between August and October of next year. Combining MMC with digital cameras and, as time goes by, all of the other myriad applications for flash, and, dare I whisper it, a win in the Lexar case, will make this company a big winner eventually. But the real takeoff for SNDK (that is, a stock price higher than, say, 50) probably won't happen until sometime between autumn 99 and spring 00. That is when MMC will be taking off, and the market for digital cameras will be more mature, with revenues even greater. My opinion only.