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

To: nealh24 who wrote (15490)	10/11/2000 1:41:55 PM
From: Mark Oliver	Respond to of 60323

Here is a general discussion of the Flash market and Sandisk. It was published today. Nice rally of 53. Surprised to see the strength. I thought it would be another one of those days. I sold some at 72 last week thinking to buy the dip. Wonder if this is bottom? Regards, Mark individualinvestor.com <excerpt> Semiconductor: All About the Flash Memory Market Page: 1, 2, 3 individualinvestor.com (Continued) SanDisk SanDisk (NASDAQ: SNDK - Quotes, News, Boards) produces removable NAND flash for use in digital cameras (a strong market) and for other personal electronic devices. The company has done well to stay on top of the technology curve, announcing it will produce an industry-leading 512-megabit chip in mid-2001 through a joint venture with Toshiba. Overall, SanDisk appears well positioned to benefit from the need for ultra-high-density flash in many next-generation personal electronic devices. It also has invested $75 million in Israeli chip-equipment maker Tower Semiconductor (NASDAQ: TSEM - Quotes, News, Boards), which allows it to guarantee some future production capacity, currently in tight supply, and a 10% equity stake in the company. However, SanDisk remains sensitive to the health of the worldwide economy, particularly in the U.S., and the continuation of brisk spending on cutting-edge consumer electronics.

To: nealh24 who wrote (15490)	10/11/2000 3:53:14 PM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 60323

Neal, the agreement between SanDisk and Tower calls for SanDisk to buy newly issued shares in Tower, equal to 10 percent of the company. I believe that's accurate, but I'd have to go back to the recent announcement of the deal to make sure. The agreement is contingent upon the Israeli government providing $300 million assistance for building the new factory. That part has just come through, so it looks like all systems are go. Also, the agreement between SanDisk and Tower was made at a time when Tower stock was selling around 23. But the agreement also provided that if the stock price should drop, SanDisk would pay the going price. Thus, the SNDK investment costs less than was initially anticipated, an even better deal for SanDisk. That 10% share of TSEM gives SNDK an opportunity to profit from the growing market for embedded flash memory, a market slightly different from that for removable flash cards. Art