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Technology Stocks : WDC/Sandisk Corporation
WDC 221.51-0.3%Jan 16 9:30 AM EST

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To: Leo Francis who wrote (712)9/2/1997 11:55:00 PM
From: David W. Tucker   of 60323
 
I keep hearing mumblings about Sandisk being a takeover target. I think it's unlikely for the near future. Sandisk is partially owned by Seagate (25%) and about 30% by insiders (last I heard). I doubt it could be taken over outright. Seagate doesn't have the cash to buy it out.

Our CEO is a great engineer and marketing genious. I think he wants to stay around and see his company pan out. He would insist on a very high price I think.

I am a bit biased. I don't want Sandisk bought out because I will probably lose this pure play on their flash memory technology. I don't want Sandisk to become 10% of some other company.

Our best bet is to see Sandisk continue in its present capacity. Let everyone else come crawling to them for licensing agreements.

I wish the stock wasn't so tied to the "semiconductor" sector. Now that Sandisk is on the playing field, it seems to be attached to the entire sector as far as stock movement is concerned. It bothers me because Sandisk is presently set apart from the others in my opinion.

Anyway, since the market is up, we should be able to ride along. The next licensing agreement should give us another lift. There are many more people watching this company now.

Good luck...

dave
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