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

To: Bargain Hunter who wrote (6695)	8/21/1999 1:40:00 PM
From: Bargain Hunter	Respond to of 60323

Last week's trading was very interesting. The price took a hit following the announcement of the secondary, probably a mixture of profit taking and short selling in anticipation of the dilution. Then it recovered nicely on Friday, especially towards the close when there was the appearance of panic buying: maybe some of the shorts got nervous and covered. I'm a little suspicious of the activity on Tuesday just over half way through the session. Yahoo shows a big spike in volume. Not sure someone didn't get an early tip about the SEC filing and sell short. Does anyone have access to more detailed trade info that explains what happened? Shorting this stock based on about a 10% dilution is very risky. It is so volatile that it sometimes moves more than 10% in a day anyway. And, while I consider it significantly overpriced by any normal measure, I have given up trying to apply any rational model. SNDK is still not well-known to the general public but will become better known as MP3 players hit the streets in large numbers. The timing of the secondary is interesting in this respect because the underwriters will be trying to drum up interest in the stock at the same time. There seem to be a lot of naive investors out there who will buy almost anything that they have heard of that sounds like a good prospect for growth, even if the price already discounts several years worth of high-double-digit growth. I think SNDK will stay volatile for the next few weeks, with a surge leading into the secondary, followed by a dip. After that, who knows?