WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 168.90

+4.9%

Dec 5 9:30 AM EST

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To: Ausdauer who wrote (6834)	8/31/1999 8:18:00 AM
From: orkrious	Read Replies (1) of 60323

Aus, increasing the number of shares authorized is standard operating procedure in every growing corporation. This in itself is not dilutive. They are only authorizing the shares. The shares have to be issued to cause dilution. They have to have it authorized before they can effect a stock split. Remember, stock splits are dilutive, but it's expected. If you have 1000 shares of a stock that earned $1/share in a year, after a split you have 2000 shares of a stock that earned $.50. If they were to acquire a significant company, they would likely do it for stock. They need they additional shares authorized to do it. Whether or not the acquisition was dilutive depends on how much in earnings the acquired company brings to the table compared to how many shares had to be issued. Many acquisitions are accretive, not dilutive. Last, as I recall, I am not enamored of SNDK's employee options giveaways. They give away a lot. They also need to have shares authorized for these options programs. I hope this helps. Jay

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