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

To: Ausdauer who wrote (7091)	9/26/1999 6:38:00 PM
From: Art Bechhoefer	Respond to of 60323

As I understand it, the underwriter agrees to sell shares for the company and the other individuals. The price of $67.19 represents what the sellers expect to receive, but NOT what the underwriter gets. Presumably, the underwriter gets a lot more, if the offering is successful. Put another way, the underwriter makes a profit if the trading price of the shares remains above $67.19, and loses money if it goes below that level. The underwriter will probably withhold placing too many of the new shares on the market until demand picks up. My guess is that the shares will stabilize in the low to mid 70's, but that's just a guess.