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

To: quidditch who wrote (7854)	10/28/1999 11:44:00 AM
From: Ausdauer	Respond to of 60323

Steve, Thanks for your reply. We will have to sit on the sidelines and wait it out. It at least appears that we are heading toward a conclusion to the case. Ausdauer SanDisk...See the Big Picture

To: quidditch who wrote (7854)	10/28/1999 1:52:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

Without having had time to take a closer look at the SNDK papers available to the public, I suggest that the partial summary judgment motion means that, following discovery, there may be triable issues of fact (which may go in favor of SNDK, if we are to believe the earlier remarks of the judge) but that there may also be issues where documentation is such that the court can grant summary judgement without further delays. How does all this affect the stock? It creates uncertainty and works against investor confidence. Even if the company issues favorable news releases on new products, sales, etc., the shares may simply remain in the low 50's until the matter is resolved. As for the issue of additional shares diluting earnings and price, it looks to me as if some, if not most of that impact is already factored into the current price.

To: quidditch who wrote (7854)	10/30/1999 5:31:00 PM
From: Ausdauer	Read Replies (1) \| Respond to of 60323

Steve and Thread, I don't believe that SanDisk would request an injunction unless they feel confident that they have the upper hand. You see, history has this strange habit of repeating itself... Samsung barred from selling flash in U.S. The two companies had hoped to resolve the dispute through negotiation, but talks broke down late last month. In responding to SanDisk's complaint, Samsung said it faced paying unusually high, double-digit royalties. Memory royalties are usually about 3% to 5%, Niebel said. "And that wasn't even the deal-breaker," said Keith McDonald, vice president of sales and marketing for Samsung Semiconductor Inc., San Jose. Neither company would quantify the royalty rate that Samsung has agreed to pay. However, several industry sources said the sum mentioned prior to the ITC injunction exceeded 10%. Reputation as a tough guy. Even before this latest accord, SanDisk had earned a reputation for aggressively asserting its patent rights. In addition to amicable cross-licensing agreements with Hitachi Ltd. and Sharp Corp., SanDisk also inked a deal with Intel Corp. in October 1995 following lengthy legal wrangling. techweb.com techweb.com Ausdauer *SanDisk...See the Big Picture*