WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 135.63

-3.3%

1:20 PM EST

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To: Steve 667 who wrote (16363)	11/1/2000 12:37:37 PM
From: Ausdauer	Read Replies (2) of 60323

Lexar's Float Steve, not only is the float small, the stock is very illiquid. I posted insider and institutional holdings a few weeks earlier. Message 14623377 Lexar's greatest attributes are the fact that it does cater to the high-end professionals and it has a manufacturing relationship with Sony which may prove very important. Lexar is struggling with profitability of their complete product line (including card peripherals, CompactFlash, & SmartMedia that it presumably buys refabricated by Toshiba), is burning cash, and is not expected to reach profitablility until Q4 of 2001. The spectre of an infringement judgement, a possible US product injunction, promises of a work-around by year end despite the fact that the court recently (10/13/2000) denied a motion of summary judgement for non-infringement of the same, a CEO who has exposed the company to additional liability by his actions on the IPO date, the dire consequences of a finding of "willful infringement" and continued legal expenses must bear heavily on the company's shareholders. There must be great pressure to settle with SanDisk. I believe a VC outfit owns several million shares of this company. Perhaps they realize now how illiquid the stock has become and that a judgement against the company may lead to a total loss for them. Let's hope they exert maximal pressure to settle. Lexar would do well to settle and then focus on their Sony relationship and their high speed professional digital film market and related adjacent services. With the SanDisk issue out of the way isn't LEXR a much less risky and potentially more attractive company for investment? With the SanDisk suit settled would it be in the realm of possibility that Sony acquires them or at least broadens their investment in LEXR? Ausdauer

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