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

To: Ausdauer who wrote (6732)	8/24/1999 7:18:00 PM
From: Sam	Read Replies (1) \| Respond to of 60323

Aus, <<How are these shares pawned off on clients at a reasonable price and is this price made public?>> Part of the job of an investment bank is to advise companies on what price to offer shares at. They go around, often with people from the company, on a road show meeting with potential investors, telling them the story, telling them what they think a fair price is--both to the company and the investor, allegedly--and getting their feedback. When the offering day comes, they "price" the offering in accordance with their sense of what will work (or, occasionally, they'll pull it if they think that the company won't get a good deal from it). Yes, of course the price is made public, though in a "hot" offering, you and I won't get any, we'll get it at the opening price whatever that is, in a hot offering, double or more what the offering went off at. The people who are "good" customers of the big investment banks are the people who get these things. They buy the "bad" or mediocre deals as the price for getting to a good price on the good ones. Sometimes, yes, they "flip" them, but some banks frown on this because they often try, at least, to support the price of the stock that they place for awhile at any rate. The question is, is the Sandisk's story powerful enough to support this price, which most of us who have been holding it for more than a few months feel is high? I'm guessing for the time being it is. Now if it doubles again, I'll have to revisit the question. We'll see how things develop. If we start seeing triple digit revenue increases, and good earnings increases (especially with increasing royalty income, which is of course almost all profit at this point), well....