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

To: Sam who wrote (6665)	8/18/1999 10:36:00 PM
From: SBHX	Read Replies (2) \| Respond to of 60323

Sam, Actually my facts are wrong. It's not 3M out of 30M. It's 3M on top of existing 27M. That 30M is after the 3M shares are issued. A 2.25B market cap now is at $82. With 30M shares, that's $75. With a 52wk high of $92.5, that's 2.5B. biz.yahoo.com I wonder what the market is willing to accept. If we take the high of 92.5, (2.5B), then that's $83. If the Dec 99 target was $120, then it just became $108. Anyway, I noted that in the past yrs, roughly the same amount of shares were issued in 94-95, 95-96, 97-98. 97-98 was the only yr, 'no' new shares were issued. So this is normal operating mode for SNDK. sandisk.com This stock is also closely held until recently : On May 99, only 212 shareholders were on record. That number is probably much higher now, but the 'official' float of 16M, and the number in individual shareholders' hands is probably even smaller. Let's take that 16M number anyway, it now becomes 19M, which is a 19% increase in supply. Let's hope the market will absorb the excess supply... --- This stock should go off between 82 and 85, if today's prices are any gauge. I'm not as optimistic, I think things will be even more volatile now, even if this stock does break 100 by Dec, it may see 75 or 70 before it sees 100. Happy investing. ---

To: Sam who wrote (6665)	8/18/1999 11:00:00 PM
From: Craig Freeman	Read Replies (1) \| Respond to of 60323

Sam, since SNDK was at $5 just ten months ago -- after an endless stream of good news -- what basis do you have to believe that the offering will "go off between 82 and 85"? SNDK's P/E is ~150. With a P/E greater than any major 'Net stock with measurable earnings, how do you justify this price? MSFT trades at a P/E below 60. Intel's is ~37. If these monopolistic giants with multi-billa-buck profits and multi-year track records command such P/Es, what makes you think that SNDK's quarterly profit of $1.5M makes it worthy of a $2B+ market value? It reminds me of the first Austin Powers movie where Dr. Evil says that he will ransom the world for "one million dollars". And after someone says that $1M is not a whole lot of money, he changes his mind and asks for "$100 billion dollars". I, for one, would have preferred a bond offering or a split over a shareholder distribution of neon-blue, striped leisure suits. But even that would have been better than 3M new shares. Craig