Aus,
<<SanDisk has not sold UMC shares and is restricted from selling for at least 6 months. They are reporting a one-time gain on the issuance of shares, not the sale of these shares.>>
I still don't quite understand this. If they haven't sold any shares, why record a gain? The gain can, with the flick of an earthquake by Mother Nature, or a miscalculation by Mr. Greenspan and friends, be wiped out in a flash, if the gain hasn't been monetized. The press release said that one half of the shares can be sold 6 months after the effective date of the merger. When was the merger effective? Perhaps they have sold those shares.
If there will indeed be $344 million extra dollars in Sandisk's coffers, does this mean that the secondary was unnecessary? I'm a believer in having cash in the kitty, especially in a capital intensive business such as this one, but did they need that much cash?
In any case, I think we will fly through the air after earnings, if they and the forward guidance are as good as I expect them to be. Overall market permitting, as always. Mr. Greenspan may be frowning a little too much these days.
Sam |
