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

To: Ausdauer who wrote (6834)	8/31/1999 8:18:00 AM
From: orkrious	Read Replies (1) \| Respond to of 60323

Aus, increasing the number of shares authorized is standard operating procedure in every growing corporation. This in itself is not dilutive. They are only authorizing the shares. The shares have to be issued to cause dilution. They have to have it authorized before they can effect a stock split. Remember, stock splits are dilutive, but it's expected. If you have 1000 shares of a stock that earned $1/share in a year, after a split you have 2000 shares of a stock that earned $.50. If they were to acquire a significant company, they would likely do it for stock. They need they additional shares authorized to do it. Whether or not the acquisition was dilutive depends on how much in earnings the acquired company brings to the table compared to how many shares had to be issued. Many acquisitions are accretive, not dilutive. Last, as I recall, I am not enamored of SNDK's employee options giveaways. They give away a lot. They also need to have shares authorized for these options programs. I hope this helps. Jay

To: Ausdauer who wrote (6834)	8/31/1999 2:37:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

This looks like the efficient method of preparing for a stock split. Also, by having extra shares available for acquisitions, it sounds to me like SNDK might end up settling the LEXAR suit by offering to buy the company (and its manufacturing capacity) for a cheap price, thus putting Lexar out of business but increasing its foothold in flash memory manufacturing capacity. SNDK buys Lexar, the Lexar management pays its legal fees, ending up with very little for all their effort, and everybody goes their own way. That maximizes the return for everyone except the lawyers. And if the suit goes to trial, SNDK will probably win, and Lexar will then declare bankruptcy, providing nothing for anybody EXCEPT the lawyers.