Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

The reason it is not a core issue, is because these expected results are a "fleeting" situation. If the economy runs into a rough spot in 2005, just as more capacity comes on line, profit margins can be drastically reduced. The beauty with SNDK is that it has bu$$ like qualities, a bunch of license fees, and these increase as the segment of the flash market they dominate (with patents) increases. They had $36 MM in license revenues last quarter, the nature of these revenues is that they are about 45 to 90 days after the actual sale (by the licensees), so the bulge of flash sales during christmas (showing up in SNDK top line) by SNDK licensees is not going to show up till next quarter. Since these drop directly to the bottom line, I am sill (FA wise) positive on SNDK short term. I'll watch the premarket tomorrow and probably start play it early if I see a positive trend developing. I surely believe that the market has overdone worrying about the comment on margins and would no be surprised to see a slew of upgrades down here. I'd better go and take a little snooze her, or else I won't be up in time for the morning's action.