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

To: Ausdauer who wrote (8382)	12/13/1999 12:12:00 AM
From: Craig Freeman	Read Replies (1) \| Respond to of 60323

Ausdauer, I searched the WSJ on Friday for "SNDK" and got nothing for the day. Today I did a 30-day search for both "Sandisk" and "SNDK" and the latest article was dated 12/8. Perhaps the convertible shares article was corrected or withdrawn. Craig

To: Ausdauer who wrote (8382)	12/13/1999 3:03:00 AM
From: Artslaw	Read Replies (1) \| Respond to of 60323

What the hell is Eli going to do with $600+ million in cash. He's so confident in SNDK that he is going to use it as part of a stock buyback program, knowing that he'll make four times that (forget the part where the bonds are convertible to SNDK stock). Sort of like when Intel used to agressively sell puts on their own stock to generate cash. Steve

To: Ausdauer who wrote (8382)	12/13/1999 3:10:00 PM
From: Art Bechhoefer	Respond to of 60323

Assuming the WSJ facts are correct and another $200 million is obtained through a convertible issue, I think the motive is simply that now is a good time to raise money. If people are willing to throw money at stocks like RedHat (which is actually one of the better recent issues), then SNDK ought to use the most appropriate means to raise cheap capital. They need every dollar they can get to increase production, pursue ongoing litigation to protect their intellectual property, and maybe even ADVERTISE! Six months from now, when interest rates are up (based on higher oil, if not higher labor costs as well), such opportunities will be harder to find. Capital for small companies, even those as well established as SanDisk, can dry up in a hurry if market conditions change or interest rates go up.