1. Andres Moreno ACG2021. 0H1

2. Executive Summary After Analyzing SanDisk Corporation. Liquidity Ratios, Profitability Ratios, Solvency Ratio, Market Strength Ratios, and SanDisk future plans, I can conclude that SanDisk is a company that is amazingly expanding and economically doing above average. As a matter of fact, SanDisk is doing better than 87.2% of S&P 400 companies and 95.4% of Technology Hardware & Equipment companies. SanDisk Corporation is a corporation that has the production capability of innovating its inventory and still have the ability to sell at competitive prices. Besides that, SanDisk Corporation is gaining brand awareness and is positioned as the retail market leader. To conclude, due to SanDisk Corporation significant 45% net income incensement during last year and massive expansion plans during 2007, SanDisk Corporation stocks are something I would seriously consider to buy. Go to SanDisk Financial Statements Click Here.Click Here

3. Introduction Chief Executive Officer: Dr. Eli Harari Home Office: 601 McCarthy Boulevard Milpitas, CA 95035, United States Fiscal Year Ending Date: 1-Jan-06 Principal Products and Services: SanDisk Corporation, the world's largest supplier of flash data storage card products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high-density flash memory and controller technology. Main Geographic Area of Activity: Milpitas, California

4. Audit Report Company’s Independent Auditors: - Catherine P. Lego (chairperson) - Irwin Federman - Steven J. Gomo - Ernest & Young LLP ( Accounting Company) Auditors Opinions: Auditors said that SanDisk ability to reduce costs faster than the decline in price is one of the reasons for SanDisk profitability success. As a matter of fact, in 2005 gross margin and operating margin hit a record of 25%. Besides that, auditors expect higher revenues, operating income, and earnings per share for the following two years. As a matter of fact, auditors expect that by 2007 last quarter, SanDisk Corporation should be far ahead of its major competitors (Lexar Media, Inc. and Renesas Technology Corp.)

5. Stock Market Information (as of 10/05/06) Current Price: 55.58 Twelve Month Trading Range: - High: 79.8 - Low: 37.34 Dividend per share: 0.00 Recommendation Trends: (Data provided by Thomson/First Call )Thomson/First Call Current Month Last MonthTwo Months Ago Three Months Ago Strong Buy6865 Buy9998 Hold6468 Sell0002 Strong Sell0000

6. Historical Prices

7. Investment Opinion After analyzing historical prices and trends, and after reading some headlines about SanDisk Corp., I would say that although investment recommendation trends for the current month do not suggest a strong buy or buy, but a strong hold instead; I would suggest to buy SNDK stocks. At the end of 2005, SNDK auditors stated: “ With retail outlets growing to 150,000 worldwide storefronts, SanDisk is gaining brand awareness and is attrectively positioned as the retail market leader and industry innovator for the growing digital consumer revolution.” “Retail expanding and mobile cards innovations are the main reasons for SanDisk 30% revenue growth. Having that in mind, on October 4, 2006, SNDK chairperson stated that, “SanDisk Launches Major Retail Expansion in India with Broad Line of Products and New Distributors; Ingram Micro And Rashi Peripherals Plan to Add More Than 14,000 Outlets for SanDisk Products in 2007.” Therefore, since the demand for flash data storage cards is increasing significantly, and SanDsk is gaining brand awareness and expanding to continue positioned first in the retail market; I would expect that buying a stock for SNDK today might be a significantly cheaper than what it may cost in a near future. http://biz.yahoo.com/rb/061004/india_sandisk.html?.v=3

8. Industry Situation & Company Plans Now days,being positioned as the retail market leader, SanDisk Corp. is doing like many other technology companies would like to be doing. SNDK is doing better than 87.2% of S&P 400 companies and 95.4% of Technology Hardware & Equipment companies (Institutional Shareholder Services).Institutional Shareholder Services Regarding future plans: SanDisk is Launching a major retail expansion in India with broad line of products and new distributors (http://).http://) SanDisk along with Best Buy and are planning to launch digital music players (http://)http:// Keep strong leadership and profitability by staying ahead in technology, manufacturing and Intellectual property (http) (page 4)http Reduce costs at a rate faster than the decline in pricing like in 2005 (http) (page 4)http

9. Multistep Income Statement (In Thousands) SNDK has $ 287,029,000 more than previous year to cover operating expenses and other expenses (42%). SNDK has an income of $ 576,582,000 after paying operating expenses. $ 157,991,000 more than previous year (38%). SNDK has a net income of 386,384,000 after operating expenses are deducted, revenues are added, and income taxes are paid. $119,768,000 more than previous year (45%). Go to SanDisk Income Statement Click Here. (Page 124)Click Here January 1, 2006January 2, 2005 Gross Profit972,734685,705 Income From Operations576,582418,591 Net Income386,384266,616

10. Balance Sheet (in thousands) SNDK Assets increased by $ 800,007,000 (34%) SNDK Liabilities increased by $ 216,366,000 (57%) SNDK Stockholders Equity increased by $ 583,641,000 (30%) Can be concluded that SNDK is expanding at an enormous rate making assets, liabilities and stockholders increase Go to SanDisk Balance Sheet Click Here. (Page 123)Click Here. AssetsLiabilitiesStockholders EquityLiabilities + Stockholders Equity January 1, 2006 3,120,187596,3962,523,7913,120,187 January 2, 2005 2,320,180380,0301,940,1502,320,180

11. Statement of Cash Flows SNDK Cash Flow in 2006 is $ 1,618,214,000 grater than 2006 Net Income. 2005 Cash Flow is 1,260,058,000 grater than 2005 Net Income. SNDK 2006 Cash Flow increased by $ 477,924,000 than previous year (31%) SNDK is growing primarily by expanding the retail sector and having new distributors in new countries. (http://)(http://) SNDK primary source of financing is stock sales Go to SanDisk Cash Flow Click Here.Click Here January 1, 2006January 2, 2005 Cash Flow2,004,598,000.001,526,674,000.00 Net Income386,384,000.00266,616,000.00

12. Financial Statement Notes Organization Balance Sheet Information Compensation and Benefits Concentrations of Risk and Segment Information Commitments, Litigation, Contingencies and Guarantees Income Taxes Strategic Investments Stockholders’ Rights Plan Net Income per Share Related Parties Subsequent Events

13. Liquidity Ratios January 1, 2006January 2, 2005 Working Capital2,004,598,000.001,526,674,000.00 Current Ratio4.505.31 Receivable Turnover8.806.80 Avg. Days Sales Uncollected41.5053.70 Inventory Turnover5.054.13 Avg. Days Inventory on Hand72.3088.40

14. Liquidity Ratios Analysis SNDK has $ 2,004, 598,000.00 to continue business operations. $ 477,924,000.00 more than previous year (31% more). SNDK has $ 4.50 of current assets for each $ 1.00 of current liabilities. $ 0.81 less than previous year. However, not necessarily inconvenient since assets are being used effectively Relative size of accounts receivable and the effectiveness of credit policies is 8.80 times. 2 times grater than previous year. Takes 41.5 days for SNDK to collect receivables. 12.2 days less than previous year SNDK relatively size of inventory is 5.05 times. 0.92 times grater than previous year Takes 72.30 days for SNDK to sell its inventory. 16.1 days less than last year.

15. Profitability Ratios January 1, 2006January 2, 2005 Profit Margin16.0015.000 Asset Turnover0.850.65 Return on Assets14.209.80 Return on Equity0.170.12

16. Profitability Ratios Analysis SNDK produces 16 cents on each dollar of net sales. 1 cent more than previous year SNDK produces 85 cents in sales for each $ 1.00 invested in average total assets. 20 cents more than previous year For each dollar invested, SNDK assets produced $ 14.20 of net income. SNDK earned 17 cents for every dollar invested by stockholders. 5 cents more than previous year

17. Solvency Ratio SNDK is mostly financed by stockholders and not creditors. January 1, 2006January 2, 2005 Debt To Equity0.240.20

18. Market Strengths Ratios Investors receive $ 1.12 more underlying earnings per dollar invested Investors expect their return to come from increases in the stock’s market value not dividends January 1, 2006January 2, 2005 Price / Earnings Per Share28.4829.60 Dividend YieldNone