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

To: OrionX who wrote (1046)	10/22/1997 3:51:00 AM
From: Mike Winn	Read Replies (1) \| Respond to of 60323

Sometimes, companies go on a secondary simply because of good market conditions even if they don't need the money immediately. Like in the earnings report, Sandisk indicated they only go on a secondary if the market condition is good. When market conditions are good, companies like to raise a lot of cash just in case they need in the future for acquisition or for expansion. Who knows how is the market next year, and if the market is bad and you need the money at that point, then what do you do? Sandisk may use the money to build more fabs. Currently, Sandisk makes most of the flash through Matsushita in Japan, UMC and Alliance Semiconductor in Taiwan, Micron in the US. May be now, they want their own fab. Acquisition is another reason, eventhough I can't think of any company they want to acquire. The most plausible reason is they just want to have the money just in case some good opportunity comes around.