WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 181.44

+1.0%

3:59 PM EST

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To: Joe Zunic who wrote (1043)	10/21/1997 11:51:00 PM
From: Craig Freeman	Read Replies (2) of 60323

Joe, there are several possible explanations for the proposed issuance of new shares: 1) Things are far worse than we know and SNDK expects to NEED the money in the near future. 2) The Company has an acquisition in mind but deems it premature to announce this event. 3) The Company wishes to expand upon their ability to produce and deliver product through an investment in chip-producing facilities. 4) The Company expects orders and inventory to increase dramatically and has elected equity financing over bank financing. 5) The greedy bastards in management want to sell the company and need to create an expanded shareholder base so they can dump their shares at a premium before announcing that they will be acquired by Toys R Us. Anyone care to add to this list? I for one can't make heads nor tails out of why a cash-rich company with no long-term liabilities and massive deferred earnings would need to raise cash through equity financing. Craig

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