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

To: Alan Lynch who wrote (5509)	4/20/1999 10:47:00 AM
From: Sam	Respond to of 60323

"Does Sandisk receive royalties from Samsung?" Yes.

To: Alan Lynch who wrote (5509)	4/20/1999 12:17:00 PM
From: Ausdauer	Respond to of 60323

Alan, SanDisk may receive royalties from Samsung for the on-board chipset. This may be part of the $32 million dollars they receive annually as royalty payments. Ausdauer

To: Alan Lynch who wrote (5509)	4/20/1999 7:04:00 PM
From: Art Bechhoefer	Respond to of 60323

Alan, yes, Samsung pays royalties to SNDK. As to the number of analysts who have enough understanding of the technology to make an informed decision on something other than purely financial data, I would not want to hazard a guess. I have a client who is a portfolio manager, and even though his firm just hired a technology analyst, he still relies on my recommendations. He decided to buy some SNDK recently, and he also bought some IACO - another small software stock that has been largely overlooked. When you look at companies with proprietary technology, such as SNDK or QCOM (which just issued a very optimistic earnings statement today), you can make some comparisons. QCOM has established a growth rate around 50% or more. Its shares are trading at 150 on Instinet in after hours trading, up from about 124 this morning. That's 10 times book value, which, for a fast growing company is actually quite reasonable. Now look at SNDK, at barely 3 times book value and also a very high growth rate. Comparisons like this tell me that SNDK is grossly undervalued. Were it better known to analysts, or if it were a little bigger (some analysts won't even bother to look at anything with a market cap of less than $1 billion), the stock would surely be selling around 50. I wouldn't worry about it getting there too soon, because if it did, I wouldn't be able to buy as much. Art