WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 179.55

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9:55 AM EST

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To: ED PLOPA who wrote (1037)	10/21/1997 4:47:00 PM
From: Joe Zunic	Read Replies (2) of 60323

Ed: In all fairness to Mike, I do believe he has a point about the CEO!! However, I do believe that "idiot" is an incorrect adjective when used to describe Mr. Harari. Can you think of another one??? While we are discussing Management, how about the CFO. You appear to be a very savvy and financially astute indivividual. Do you really think both the CEO and CFO understood the market implications of their forward looking statements pertaining to sales and the possible financing???? Two points for your financial mind to consider: 1) In SNDK's 10-Q for the period ended June 30, 1997, SNDK makes the following statement "Management believes the existing cash and cash equivilants, short term investments and available line of credit will be sufficient to meet the Co's currently anticipated working capital and capital expenditure requirements for the next twelve momths" This statement was made in August!!! SNDK currently has cash & short term investments of approximately $60 million at Sept 30, with receivables at $23 million. The purpose of the proposed offering is for "cap expenditures and working capital"; please, give me a break. The only significant cap expenditure disclosed to date is the $22.5 million due for the mfg joint venture with UMC in Taiwan. This is due in July of 1998. Shouldn't cash flow from operations be sufficient to cover this obligation?? I speculate that something may be in the works that we do not know about. 2) If you are not aware of SNDK's overall strengths and market position, I believe your first move would be to sell based on Mr. Harari's statements. However, intelligent investors should use his comments as an opportunity to strenghten their SNDK position. I strongly believe Nov is going to be a good month for all that remain patient and focused on the long term. A final note, I strongly believe that a GOOD STRONG and CAPABLE CFO is needed for this Company to effectively manage the volitality that is inherent in the FLASH memory and equity markets today.

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