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

To: Sam who wrote (20137)	4/19/2001 10:49:52 AM
From: Tumbleweed	Read Replies (1) \| Respond to of 60323

Re UMC 'loss'. May well be a tax thing? Tw

To: Sam who wrote (20137)	4/19/2001 11:03:59 AM
From: Starlight	Read Replies (1) \| Respond to of 60323

Sam - That comment about "other than temporary" caught my eye, too. It seems a strange remark to make, and it prompted me to think things wouldn't improve for a while. I sold more than half of my SNDK position today. Got out at a profit on that part, but what's left is at a loss. I'm not sure what to make of this company any more. It seems to have fallen and can't get up. Betty

To: Sam who wrote (20137)	4/19/2001 12:15:58 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

Sam, I think the "other than temporary" justification for taking a writeoff on UMC stock is based on the need to value the shares at the lower of cost or market. A company probably has a lot of discretion in deciding when to take the loss. My guess is that by taking it now rather than later, SNDK reduces the amount of cash set aside for taxes and improves its cash flow as a result. If you've been tracking the price of UMC shares, they're beginning to pick up with the rest of the semiconductors. The low price looks temporary to me, but remember that when SNDK received the shares late in 1999 and sold some in early 2000, the price was well above the current level, and probably higher than one could expect to be reached later this year. Art