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

To: Ausdauer who wrote (11559)	5/27/2000 10:06:00 AM
From: TREND1	Read Replies (1) \| Respond to of 60323

aus Seagate set to ax 1,000, shut 2 plants BY TOM QUINLAN Mercury News Seagate Technologies Inc. continues to reorganize and streamline its operations, with the company confirming Friday that it will close two plants and lay off more than 1,100 employees. The plant closings -- in Anaheim and Mexicali, Mexico -- are part of an ongoing restructuring of the Scotts Valley company that was announced last September. The two plants manufacture the components that are used in the magnetic disks for Seagate's disk-drive products. Although the company continues to operate product development and technology centers in the United States -- including facilities in Santa Clara, Colorado, and Minnesota -- most of its manufacturing takes place in Ireland and the Far East. Disk drives are used for long-term storage of data and software applications and are a key component of virtually every personal computer and server sold. Seagate spokesman Woody Monroy said the company decided to close the plants because it is now cheaper to buy the components from other companies than to manufacture them in-house. Another Seagate facility making the components in Ireland will continue to operate and is expected to increase its output, Monroy added. While the cuts were part of a fiscal 2000 reorganization plan that Seagate outlined in September, Seagate appears to be reducing its workforce far more severely than it had originally envisioned. In a December filing with the Securities and Exchange Commission, the company stated that it had plans to reduce its workforce by about 11,000 employees and that 8,000 of those jobs had already been eliminated. In April, documents filed with the SEC indicated the company was planning to cut as many as 21,800 positions, and that 17,500 had already been eliminated. So far, the company's employee count has shrunk from 82,000 at the end of last June to about 61,000 today. The plant closings will be completed over the next 90 days. Seagate told employees of the move Wednesday, when the company also announced an executive reshuffling. In the biggest change, Chief Executive Stephen Luczo relinquished the president's position to Chief Operating Officer William D. Watkins. Luczo will remain CEO and will focus on the company's strategic directions rather than day-to-day operations, the company said. Seagate still expects to complete its complicated transaction with Veritas Software Corp. by July. In that deal, Veritas will acquire all of Seagate's assets -- including a 33 percent stake in Veritas -- and then sell the disk drive business to a group of private investors.

To: Ausdauer who wrote (11559)	5/27/2000 10:56:00 AM
From: JRI	Respond to of 60323

Two big chips conferences next week, DLJ and someone else...if psychology 1/2 decent, should be good for a pop for all semi's (and related, like SNDK)... Ausdauer, thanks again for all your hard work.....In a previous post, you mentioned that you thought it was proper that SNDK was not included in recent articles about chip companies...given its focus on CARDS....although you are technically correct (no pun intended), I think IR needs to do SOMETHING to get the story out.....SNDK's appearances in the technology press are way-too-infrequent.....many investors either have never heard of them, or are confused about what they do...

To: Ausdauer who wrote (11559)	5/27/2000 11:34:00 AM
From: Jacques Tenzel	Respond to of 60323

Thank you for the clarification. I also must say that I really appreciate the in-depth knowledge that you bring to this thread. As a lurker who has benefited greatly from your expertise I am looking forward to gleaning future pearls of wisdom about SNDK. Happy Investing........Jacques

To: Ausdauer who wrote (11559)	5/27/2000 1:16:00 PM
From: KevRupert	Read Replies (3) \| Respond to of 60323

Value Line: Value Line has SanDisk rated as a "1" for timeliness. A possible explanation for the late day upswing in SanDisk's price could be based on yesterday's Value Line. I received it in the late afternoon, and Value Line had a feature article on "SanDisk". On page 4893 (not the 3-month write-up, but rather an article in the "Investment Survey" section - "Sandisk" was featured. The article was titled "Selection for Growth: SANDISK CORP (SNDK-66)". The article was very favorable to the company's prospects. A couple of sentences from the 1-page article include the following: "With demand for flash memory expected to far outstrip supply for some time, we believe the company is well positioned for future growth. The equity holds wide capital appreciation potential to 2003-2005, albeit with above-average risk (Safety rank:4)." "SanDisk stock is too volatile for most investors. Still, we believe that the current share price is a good entry point for aggressive, risk-tolerant accounts." The article based its comments on the price @ $66. Estimates for eps are: 1. 2000 $ .85 2. 2001 $1.30 The article probably gave some boost to the stock at the end of the day yesterday. The stock seemed to move from the $46-$47 range to the $49 range quite suddenly. Good luck to all. Advalorem