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

To: Ausdauer who wrote (8682)	1/14/2000 3:02:00 PM
From: Sam	Read Replies (2) \| Respond to of 60323

Aus, <<SanDisk has not sold UMC shares and is restricted from selling for at least 6 months. They are reporting a one-time gain on the issuance of shares, not the sale of these shares.>> I still don't quite understand this. If they haven't sold any shares, why record a gain? The gain can, with the flick of an earthquake by Mother Nature, or a miscalculation by Mr. Greenspan and friends, be wiped out in a flash, if the gain hasn't been monetized. The press release said that one half of the shares can be sold 6 months after the effective date of the merger. When was the merger effective? Perhaps they have sold those shares. If there will indeed be $344 million extra dollars in Sandisk's coffers, does this mean that the secondary was unnecessary? I'm a believer in having cash in the kitty, especially in a capital intensive business such as this one, but did they need that much cash? In any case, I think we will fly through the air after earnings, if they and the forward guidance are as good as I expect them to be. Overall market permitting, as always. Mr. Greenspan may be frowning a little too much these days. Sam

To: Ausdauer who wrote (8682)	1/14/2000 9:47:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

Aus and Thread, without seeing the details of the transaction, I can only assume that the SNDK holdings in UMC were exchanged for stock in the acquiring company. While a "sale" for cash did not occur, it appears to be an exchange of shares for new shares, and thus it is correct to record the value of the new shares as a one-time gain, even if they aren't actually sold. This is another example of skilled management and management that is sensitive to shareholders.