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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Art Bechhoefer who wrote (6618)	8/14/1999 11:43:00 AM
From: gdichaz	Read Replies (2) \| Respond to of 60323

Art: Agree with the buy and hold approach you describe. And that sales should be limited to when fundamentals change. When cash is needed for a good purpose or emergency requirement, are covered calls your only suggestion? What happens to the covered calls if the stock goes up, as SanDisk may well do? Don't sales of covered calls limit upside potential gain and why pick a stock like SanDisk which has huge upside moves with amazing frequency? Would appreciate more info on your reasoning. Chaz

To: Art Bechhoefer who wrote (6618)	8/15/1999 8:09:00 AM
From: Craig Freeman	Read Replies (2) \| Respond to of 60323

Art, I couldn't agree with you more. In fact, when SNDK fell below $40, I sold one January 2000 call with a $40 strike for $800+. Today, that call is worth $4,000 more than when I sold it and I feel ... to say the least ... unhappy about the transaction. As smart as I was when I did my deed and as smart as you may be in recommending similar transactions to others, you really have to wonder how we went from $5 to >$80 and why ... BEFORE you place any bets. I don't have many answers but I still have a whole lot of questions. A broker I had dinner with this evening suggested that SNDK might be a great $30 stock. I am hoping that he, like so many brokers before him, is dead wrong. Craig

To: Art Bechhoefer who wrote (6618)	8/15/1999 9:22:00 AM
From: NHP	Read Replies (2) \| Respond to of 60323

>Berkshire Hathaway started buying GEICO (insurance) back in the late 70's and never sold.< Art, I remember it well! This is certainly an individual case of "blood on the streets". I was participating in a tennis tournament at one of the CCs in the DC area. At lunchtime I was seated at a table along with a GEICO board member and others. He was taking a good-natured ribbing from some of the people at the table because GEICO stock had fallen all the way down to $2/share, and the future didn't look that bright. I thought that he looked a little embarrassed! --- Gotta give Buffett a lot of credit! If I were to make a comparison between GEICO and Sandisk, it would have to be for last year when Sandisk was bumping between 5 and 6. One difference, if my memory serves me, is that GEICO had negative earnings when it was being bloodied. NHP