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

To: Zeev Hed who wrote (11553)	5/26/2000 9:02:00 PM
From: Ausdauer	Respond to of 60323

There's a standing joke around here... ...that somebody posted after the stock tanked when SanDisk won the partial summary judgement against Lexar Media. It went like this... *"Let's hope we don't win any more lawsuits."* We have coined the usual plummeting of the stock price after a favorable press release as "The SanDisk Paradox". Similar movements in the stock price in a paradoxic fashion were noted after the last earnings report, after Eli's recent appearance on CNBC, after the groundbreaking at the FlashVision site in Virginia, etc... I ask you, Zeev, do you really think anything Eli could have said or done lately would have influenced the stock price? Do you believe that I would suggest to SanDisk management (in our "subtle ways" here on The Thread) to offer a press release to influence the stock price? What I was trying to say this morning in a not terribly diplomatic way is that there are ways to pacify (Yes, pacify. You know, we are the kind of people who need our hands held.) investor anxiety without going out on a limb. A factual press release that outlined Seagate's activity, that the activity was unanticipated by the company (except as known publicly by the SEC filings), that the company doesn't know how long that the activity will continue, and that the company fundamentals remained unchanged would hardly set them up for litigation. Similarly, the hypothetical situation where the company would make such statements at "$90 per share" do not apply here. There are plenty of opportunities for ambulance chasers to misconstrue, twist and contort public statements by SanDisk post hoc. For that matter, one could look at Eli's Merrill Lynch presentation a few weeks ago and interpret that it mislead the investment community. Would anyone actually believe that was true??? Is one culpable for stating plain facts? I think not. The point that I was trying to make was that a cozy relationship between institutional investors, analysts, & the like and corporate management. This is true for the entire business world. The small investors are frequently excluded from any discussions with management and are often left to their own devices in seeking the truth. The Internet, Internet audio interviews, conference calls, accessible court documents,... have been great equalizers, but the playing field is still not totally level. This morning I may have been more provocative than I had hoped. I did not accuse SNDK management of any wrong doing. And anyone who has visited The Thread over the last 2 years knows that I have great trust in and show unwavering respect for SNDK's administrators. I suggested only that it would certainly be tempting for any company in the current market environment to offer information to analysts regarding possible scenarios about the recent price decline during times like these. Smaller investors are not privileged to this type of information. Some companies, such as VSH, have been bold in stating publicly their feelings. Other companies have just taken it on the chin. I remain steadfast in voicing my displeasure over how individual investors have the deck stacked against them in the world of Wall Street. I do believe the paradigm is changing ever so slowly. Anyone who has heard the SEC Chairman speak knows that protecting individual investors is a number one priority. And for those who view my interest in looking out for individual investors as a quaint, na‹ve, laughable, fruitless or ridiculous exercise I reply that I am undeterred. I also don't feel that I am insular in my beliefs. I still believe that Seagate's actions have significantly amplified the eventual market correction that many have predicted. SanDisk has been hit particularly hard because Seagate once held 25% of the company's stock. Offering a pure statement of fact (now that the carnage appears to be near an end) would seem to be a nice gesture by management. I would not doubt that SanDisk is looking into tabulating residual SEG holdings in SNDK and might still consider some type of press release at some point in the not-too-distant future. This type of press release is not unprecedented. For example, SanDisk offered a simple statement of fact as it related to IBM's microdrive release in December of 1998 in an effort to counter the heavy marketing and press coverage of that device. I wish everyone a happy and safe weekend. Ausdauer

To: Zeev Hed who wrote (11553)	6/3/2000 4:47:00 AM
From: The Prophet	Read Replies (1) \| Respond to of 60323

Zeev: In his ON24 interview, Harari said that SNDK should be able to maintain 300% year to year increases in MB shipments. He also referred to flash dollar sales projections for the industry of 1.5 billion now and 15 billion in 10 years. From this info, any guesses re SNDK earnings? Although I understand that SNDK has been saying pricing is "stable," there must be a significant decrease is $ per MB, otherwise earnings would grow 300% as well, once new capacity ramps up to good yields. Prophet