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

To: Craig Freeman who wrote (6656)	8/18/1999 9:00:00 AM
From: Sam	Read Replies (3) \| Respond to of 60323

Craig, I doubt if Seagate initiated this offering. The roughly $20 million that they will get isn't much for them, they have just gotten about half a billion dollars from selling about 10% of their VRTS stock, and already had over $1.6 billion in the bank (with about $700 million in debt). I suspect that when they found out that Sandisk was going to sell shares, they said that they would participate for a little. I think it is conservative and intelligent long term for them to do what they are doing. The cost of wafers is going up, there is apparently a shortage of fab capacity for flash chips, and their stock is, any sane observor would agree, high, even if, as we holders of the stock believe, it deserves to be high. they are competing with a lot of big companies with a lot of resources, this will give a nice cushion to fall on if we somehow go into recession, or their markets take longer to develop than we currently expect, or who knows what bad things might happen.