Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: JJB who wrote (7657)	10/14/1999 2:19:00 PM
From: Ausdauer	Read Replies (3) \| Respond to of 60323

JJB, I followed everything in your post except "gloom and doom"... I agree that some recent headlines are misleading and question the judgement or intention of those writing the articles or paraphrasing the earnings report for whatever reason (secondary gain?). I sensed a real tone of disgust in Eli's voice yesterday with the way the stock market treats upcoming public companies like SanDisk. For someone who is use to dealing with absolutes, laws of physics and mathematical equations I can understand his disbelief and dismay. My experience in the market over the last two years has been tainted by the fluctuations in SNDK share price, both to the upside and the downside. What happened to good old buy-and-hold investing? I am glad I am not involved professionally in the world of finance. My window to this world suggests it is full of crooks and thieves who will stop at nothing for the almighty dollar. Ptttuhhh!!! It makes me want to spit. Ausdauer

To: JJB who wrote (7657)	10/14/1999 5:53:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

JJB, you're right. The relatively small float of available shares makes SNDK a prime target for market manipulators. While the SEC can sometimes prevent this sort of thing, if it is based on insider trading, they're helpless when it comes to publicizing misleading information. The argument is always that it's simply opinion, protected by the first amendment, even when the factual basis in wrong. The best way to stop this sort of manipulation, which destroys the confidence of smaller investors in the market system, is to take the advice of Warren Buffet, who once said that he thought any investment held less than a year should be subject to a 90 percent capital gains tax. Maybe it was 99 percent, and maybe the time element was 30 days. But the main point is that a tax on speculation (sometimes used in the real estate market to prevent "flipping" properties for momentary gains) could discourage these wild fluctuations and in the end actually ENCOURAGE long term investments for gains based on genuine growth in earnings and assets. It is another example of why intelligent regulation can make the "free" market perform better than it would if it were totally unregulated. Art