WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 157.75

+0.4%

Nov 14 9:30 AM EST

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To: NHP who wrote (3826)	10/20/1998 10:38:00 AM
From: Ausdauer	Read Replies (3) of 60323

Thread, The dilution issue is one which I feel is difficult to grapple with. There is a pre-determined allocation of exercisable options which will dilute out earnings in quarters to come. Some of the officers have regularly exercised. Someone commented previously that these options augment their base salaries which are relatively small considering that SanDisk is a leading edge high technology company in Silicon Valley (where cost of living expenses are substantial). I suspect that Eli Harari sells regularly (sold regularly) to supplement his income rather than as a vote of no confidence in the company. The proverbial "downpayment on a small villa in Palo Alto." One needs to factor in stock dilution into the stock price. It may bridle earnings growth in future quarters. Is it unusual for other small cap companies in this field to have such policies regarding options? Is SanDisk at one extreme of the spectrum? Ausdauer

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