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

To: Joe Zunic who wrote (1043)	10/21/1997 11:51:00 PM
From: Craig Freeman	Read Replies (2) \| Respond to of 60323

Joe, there are several possible explanations for the proposed issuance of new shares: 1) Things are far worse than we know and SNDK expects to NEED the money in the near future. 2) The Company has an acquisition in mind but deems it premature to announce this event. 3) The Company wishes to expand upon their ability to produce and deliver product through an investment in chip-producing facilities. 4) The Company expects orders and inventory to increase dramatically and has elected equity financing over bank financing. 5) The greedy bastards in management want to sell the company and need to create an expanded shareholder base so they can dump their shares at a premium before announcing that they will be acquired by Toys R Us. Anyone care to add to this list? I for one can't make heads nor tails out of why a cash-rich company with no long-term liabilities and massive deferred earnings would need to raise cash through equity financing. Craig

To: Joe Zunic who wrote (1043)	10/22/1997 1:43:00 AM
From: Jerome Wittamer	Respond to of 60323

Joe, if I may, let me tell you I appreciate your posts, they add new issues to the thread and go to the point. Thanks for raising the quality of posts! In particular, I was referring to your mention of the financing needs of SNDK in its last 10Q and to the fact that we don't have a clue why they wanna raise that money, as you stated we don't want :"a pile of cash earning money market rates of return". If really this company has no purpose in doing that, let it run down, cause sure it will. I've owned so many cash rich companies, with no debt and no plans to make the money work. The stock tread water for months and after 2-3 years got acquired at double market value. So let's hope an acquisition is in the works. Knowing the industry, I really have no idea what it could be. Good investing, Jerome