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

To: Starlight who wrote (6882)	9/6/1999 11:18:00 AM
From: Ausdauer	Respond to of 60323

Betty and Thread, I read an article over the holiday... ...in Forbes (19SEP99) which looked at stock churning and the transient nature of stock ownership. There has been a gradual, but steady decline in allegiance with a given company both on the part of the average shareholder and institutions. Upturns and downturns in stocks are greatly exaggerated by droves of investors leaping on or off the bandwagon as a stock heats up or cools off. For this reason the investor relations division of various companies are becoming critical as they seek out investors which share a long-term perspective of the company and are willing to give that company's stock ballast and support over rocky periods. The article stated that the average time a stock is held for some internet companies (based on daily trading volume and an estimated float) is 5-7 days for a company like DoubleClick or Amazon.com, while blue chips like McDonald's, Coca-Cola, and J&J hold the interest of an average share holder from 2 to 2 1/2 years. I view SanDisk's recent rise as follows. Picture a game of racquetball where the walls and ceiling continually move toward the center. As new long term investors come on board another layer of parquet is added to the floor, the roof is skim coated and the walls are given another layer of drywall. As time passes the game of handball becomes more energetic. This kinetic energy heats up the stock and the stock price. For some reason a chunk of the float always seems in play, perhaps in the range of a half million shares. The players in the game keep bidding up the stock price, while the long-term shareholders, the foundation of the game, continue to solidify the stock. I trust that most on the this Thread share the same long-term belief in management. Despite our recent run-up, those with the patience to see SanDisk through will be greatly rewarded. I almost feel it is time to add a few chapters to the investment thesis. Message 10076891 Good Luck to All... Ausdauer