WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 139.09

-0.8%

Nov 21 9:30 AM EST

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To: Sam who wrote (20137)	4/19/2001 12:15:58 PM
From: Art Bechhoefer	Read Replies (1) of 60323

Sam, I think the "other than temporary" justification for taking a writeoff on UMC stock is based on the need to value the shares at the lower of cost or market. A company probably has a lot of discretion in deciding when to take the loss. My guess is that by taking it now rather than later, SNDK reduces the amount of cash set aside for taxes and improves its cash flow as a result. If you've been tracking the price of UMC shares, they're beginning to pick up with the rest of the semiconductors. The low price looks temporary to me, but remember that when SNDK received the shares late in 1999 and sold some in early 2000, the price was well above the current level, and probably higher than one could expect to be reached later this year. Art

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