WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 179.56

+0.7%

Dec 24 12:59 PM EST

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To: slacker711 who wrote (32484)	6/13/2006 3:47:24 PM
From: Art Bechhoefer	Read Replies (1) of 60323

Regarding the rumor that Motorola might buy SNDK shares as an investment (which is different from buying a company outright), it would probably help Motorola stay competitive by providing them another profit center. More and more Motorola handsets come with a slot for trans flash (microSD), so why not invest in the company that's making all those flash cards and lower your own effective cost of those very cards? I find it a plausible scenario, but I doubt that Motorola would simply buy shares on the open market. Instead, they might engineer a deal whereby SNDK sells them new shares of preferred stock, exchangeable into common stock at a later date, somewhat similar to the last deal where SNDK sold convertible preferred bonds that can be profitably exchanged if the stock price recovers to somewhere near $80. Art

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