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

To: Zeev Hed who wrote (16217)	10/29/2000 10:24:49 AM
From: orkrious	Respond to of 60323

The total accts. receivable increased by more than product sales increase (by $20 MM more), thus this cannot be explained by a jump in the last month of the quarter. I am not sure this is correct. Although the sales increase was less than the A/R increase, the absolute sales number was greater than the absolute A/R. Sales were $151M and A/R was $134M. A lumpy Q with larger than normal sales in the later half of the Q could explain the increase in A/R.

To: Zeev Hed who wrote (16217)	10/29/2000 10:29:19 AM
From: JMD	Read Replies (1) \| Respond to of 60323

Zeev, Jay "but it surely make sense to pay attention to this accounting quirk". Thanks to both of you for digging further--I can't imagine that the effort won't prove worthwhile. Jay offers a plausible--and relatively benign--explanation: new factories finally come on line, the supply pipe is replenished, and conditions go from being too little stock on the shelves to perhaps a slightly overstocked condition. This might account for the surge from 60 to 80 in DSO. More sinister would be a major channel in financial difficulty implying the possibility of a write-off as Zeev questions. SNDK's weakness has been luring me into taking my first ever position, but then I began to think that it was "too weak". Wrongly lumped in with the semi's? Litigation over IPR's with Lexar? Weak following on the Street? Or slowdown at the retail level as AG's 400th interest rate increase finally takes hold with conviction? Jay's tabulation suggests that the slowdown thesis doesn't hold up. I hope the new Fair Disclosure rules permit SNDK's IR department to tell us what the heck is happening. Wouldn't it be ironic if they have to 'clam up' because of FD? First one to get get the story wins a Nikon CoolPic? best, mike doyle