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

To: Ausdauer who wrote (7893)	10/29/1999 8:08:00 PM
From: Sam	Read Replies (1) \| Respond to of 60323

Aus, I'm guessing that the underwriter went out and supported the stock today, both as a good investment and to help their client. (Maybe Art can say whether that is illegal or not.) They want the price as high as they can get it for their client, and their own commissions. I think this is a buying opportunity even after today's splendid action. Even if there is a brief dip just after the offering, I am guessing a nice move upward shortly after, general market conditions permitting (always that caveat). Whether we come back down after that move up or not, I can't even speculate. Of course, my short term market calls on Sandisk haven't always been so great. Nonetheless, I did pick up some more today in the mid-50s. More toe-dipping than aggressive, I still don't trust this market and still want to conserve some cash for a better buying opp that may materialize over the next few months. We'll see. s.

To: Ausdauer who wrote (7893)	10/29/1999 8:35:00 PM
From: orkrious	Read Replies (1) \| Respond to of 60323

Aus, secondaries almost always price at the closing price from the prior close. Consequently, if it prices tonight or Monday a.m., SNDK can expect roughly $60/share. With companies whose business prospects may be peaking within a few months, the dilutionary effect of secondaries usually drags the stock down. In a company like SNDK whose business prospects are set to explode, I think the secondary (in this case only 10%) will be absorbed without so much of a hiccup. IMHO this is especially true because the stock already was dragged down by the Taiwan earthquake. The people buying now are getting a bargain, and the underwriters should have an easy sell to their clients. I think we can look at the bottom in our rearview mirror. Jay

To: Ausdauer who wrote (7893)	10/31/1999 9:03:00 AM
From: Art Bechhoefer	Respond to of 60323

Aus, and the others who wonder about the impact of the new shares: The issue date, as stated in the press release, is November 1, so we won't know until later this week. I agree that the underwriter probably took some action to support the price of the shares last week, getting them up to $60. There's nothing I know of that would be illegal in buying the stock, unless the person/group buying it has privileged information. For example, if SanDisk issues a very favorable news release tomorrow or the next day, one might draw an inference that maybe the underwriter knew about it in advance. I doubt that will happen, for obvious reasons. What I do think will happen is that it will take some time, perhaps a month or two, to absorb the extra float of about 11 percent. During that period, barring any favorable or unfavorable news events, the stock could fluctuate around the mid to high 50's. A favorable news event, say, concerning new sales projections, could send it into the 60's. As for the Lexar suit, unless they agree to a settlement out of court, it is unlikely that we'll see anything newsworthy on this issue until February or March. Art Bechhoefer