WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 163.26

+3.5%

Nov 28 12:59 PM EST

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To: Jim Greif who wrote (6810)	8/30/1999 2:01:00 PM
From: Ausdauer	Read Replies (2) of 60323

Jim, I agree wholly. The question remains whether SNDK can make good on OEM demand for CF cards and MMC (bundled with new digital cameras and mp3 players) and still meet aftermarket demand. This is concerning. Can Eli and co. buy flash memory wafer on the open market and at what price? Can they boost supply by increasing their quarterly orders at UMC? Do they have a backup supply of wafer from earlier months when demand was lower? Clearly if they cannot get finished product on the shelf other brands will eat away at market share. Let's hope they have planned ahead. The supply issue is also problematic, especially because money from the tertiary stock offering is still being drummed up as we speak and starting a new fab may be many months away. Could they possibly make a down payment with cash (~$150 million) on hand or use it as collateral??? The other issue that bothers me is the offering price for new shares, the discount to current market price and the terms of the offering. I hope that their will not be an abrupt uptick is stock resold on the street related to the new shares circulating. There are alot of unknowns here. That is why it is called investing. I still feel the SNDK story is extremely compelling and hope we find some traction here in the stock price as we go through this mini-correction. Ausdauer ($83 15/16)

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