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URL:  https://boards.fool.com/sndk-sandisk-26468037.aspx

Subject:  SNDK - SanDisk Date:  3/13/2008  10:07 AM
Author:  whatismyoption Number:  1460 of 1817

I'm cross posting this here as from a quick IETC perspective SNDK looks great and I'm interested in peoples opinions.

SNDK has fallen hard, perhaps too hard. Let’s take a look and see.
Key Statistics http://finance.yahoo.com/q/ks?s=SNDK
It is not often I see a tech company, even a commodity tech company selling at book. What’s up? Is SanDisk going out of business? Are they losing market share or gobs of cash? No, no and no again.

2007 Annual Report http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0000950134-08-003259&Type=HTML
Q4 2007 Conference Call http://seekingalpha.com/article/62011-sandisk-q4-2007-earnings-call-transcript?page=-1


Positives
- Majority international sales, tick the exchange rate bonus box.
- PIV of 54%
- A wonky but definite EPC staircase, based on Sand’s IETC spreadsheet.
- Excellent reward to risk profile. As SNDK are trading at close to book, 1.02, and with a price to tangible book of 1.33 downside is limited. $20 upside to IV with $3 downside taking SNDK below book and a drop of $5.50 with see SNDK below tangible book.
- Bad news is already priced. Any misses should have minimal impact while good results should result in good gains. According to my records in the 24 quarters since 2002, SNDK have beaten estimates 23 times.
- Short interest has been falling, currently 6%
- Industry leader investing almost 11% of sales in R&D

Cheers
Dean

Notes:
- They may have some ARS exposure in their investments, but I can find no quantified amount. F-9 on annual report. On page F-12 they breakdown the amounts, main investments in municipal notes and bonds.
- Lousy ROE, 4.5
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