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

To: thecalculator who wrote (14034)	8/18/2000 10:40:00 AM
From: Sam	Read Replies (2) \| Respond to of 60323

Just for the record, "First words from Lexar Media", courtesy of ZDNet's column on IPOs. Lexar now trading at about ten, or about 25% higher than their offering price. My opinion (FWIW) is that this ascent will last for a few weeks, but the stock won't remain in double digits much longer than that. A lot of that IPO money will go to their lawyers and, likely, to Sandisk for their settlement, even if they do manage in a redesign to work around Sandisk patents. If the redesign is so easy, why didn't they do it that way to begin with? First words from Lexar Media One of those struggling IPOs this week was Lexar Media (Nasdaq: LEXR), which makes digital photography accessories. Lexar priced at $8, well below its price range, and hasn't budged since. Given that small splash, our first question to CEO John Reimer was, "Why go now?" "We could have waited, but we've put a lot of work into this IPO," said Reimer. "We're happy to get it done so we can focus on the business." Reimer admitted to having mixed feelings about Lexar's IPO reception, but noted that the company's court battle with Sandisk (Nasdaq: SNDK) gave Lexar shares a "30 percent correction" before they even hit the market. Sandisk is suing Lexar for patent infringement. In response, Lexar is reworking its product to avoid the flap no matter what happens. Reimer said the logic behind reworking its products is simple -- make the Sandisk suit, which kicks off Oct. 23, moot. It's unclear how the Sandisk-Lexar suit will be resolved, but it's a big cloud. Reimer said Sandisk attempted to buy Lexar a few times already to gain access to its technology. As for the company's big growth markets, Lexar sees digital photography, music and content downloads as key markets. "We believe over time our shares will reflect our value," said Reimer.