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

To: limtex who wrote (26972)	11/17/2004 3:44:52 PM
From: NHP	Read Replies (2) \| Respond to of 60323

Limtex, Comments about the 4 1/2% convertibles: I was not too happy in December 2001 when I first heard about the issuance of the convertibles. It appeared to me, and to a couple of others on this thread, that the issuance of the bonds would be detrimental to the stockholders but beneficial a select few. We have already seen the effect of the conversion on 3Q04 earnings (.29 diluted, but only .24 assuming the bonds were converted). I'm sure that this dilution is already built into the current share price. The opinions expressed by some of the SI people just after learning of the 4 1/2 convertibles makes interesting reading. Start at Msg 21355 on the SNDK board where I was responding to a question asked by Aus. Please disregard any comments I made about bits per cell. I was totally wrong. ------------------------------------------------------------------------------------------------ PIPES Private Investment in Public Equities PIPES are investments by qualified institutions made directly into a publicly traded company, usually at a discount. These direct investments are available to a limited number of investors, usually are in the form of a convertible note and often avoid registration with the SEC. By targeting the offering to a limited number of accredited investors , the process to complete a deal is much faster, less complex and less expensive than a traditional secondary offering. Managers expect these companies to use the cash infusion to clear a milestone or development hurdle resulting in increased shareholder value. ------------------------------------------------------------------------------------------------ NHP

To: limtex who wrote (26972)	11/17/2004 7:12:47 PM
From: Dave	Read Replies (1) \| Respond to of 60323

What is the point of spending $1bn on a fab if all that results is simply more brutal price cuts with no end in sight. Why do airlines buy more airplanes other than their airplanes are "older" I don't suppose anyone has any idea what the plan is to cope with all out dumping by competitors? When selling a commodity product which I assert is the business SNDK is in, it is important to be the lowest cost producer and have enough capacity to supply the entire market. I have my doubts as to whether SNDK through its JV is the "lowest cost producer". Last quarter, their JV lost money.