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

To: Art Bechhoefer who wrote (20133)	4/19/2001 10:33:41 AM
From: Sam	Read Replies (3) \| Respond to of 60323

Art or anyone, This line in their release bothered me: <<In the first quarter of 2001, SanDisk recognized an unrealized after tax loss of $114.0 million on the decline in fair market value of the United Microelectronics Corporation, or UMC, shares held by the company. Due to the continued downturn in the semiconductor industry and economy in general, the company believes the decline in the market value of its investment in UMC as of March 31, 2001 was other than temporary and recorded an unrealized loss as required by generally accepted accounting principles.>> It isn't clear to me why they believe that this decline won't be reversed at some point, if not in the next few months, then in the next few years. Foundries aren't becoming less important as the costs of fabs continue to soar, they are becoming more important. Is there some legal definition of "temporary" as used in this instance? Doesn't it seem odd to continually mark an investment to market, sometimes taking large gains and other times large losses based on the vagaries of the equity markets? Sam