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

To: cmg who wrote (1053)	10/22/1997 8:02:00 AM
From: Bill D'Angelo	Read Replies (1) \| Respond to of 60323

Maybe the CEO is a 'genius'. Someone mentioned earlier that one possible explanation of the secondary might be to buy back the Seagate shares. Well, if he tanked his own stock price, those shares would be cheaper. I love mysteries like this.

To: cmg who wrote (1053)	10/22/1997 1:47:00 PM
From: Mike Winn	Respond to of 60323

Sandisk is covered by Merril Lynch and Morgan Stanley, two heavy weight investment bankers. I expect them to do the secondary also. Like Noam of MRV, Mr Eli Harari also appeared on CNBC to tout his company. Then last week, he decided to shoot himself in the foot... What's a story. =================================== August 25, 1997, TechInvestor Wall Street Rediscovers SanDisk Kora McNaughton A rash of good news and attention from two major analysts caused shares of flash memory storage company SanDisk to soar 22 percent Monday. SanDisk stock closed up 5 1/2 to 30 1/2, more than double its value just two months ago, after Morgan Stanley initiated coverage Friday with an "outperform" rating. Two weeks ago, Merrill Lynch upgraded the stock from "neutral" to "accumulate." The analysts' recommendations refocused attention on SanDisk, which licenses its flash memory technology to the world's largest chipmakers, including Intel, Toshiba, Hitachi, and Sharp. A couple of weeks ago, SanDisk won a settlement in a patent-infringement case against South Korea-based Samsung Electronics, the only company to challenge SanDisk in court. "This should help SanDisk because it means no legal bills, and it shows that the company's most vigorous opponent has given in," said Bennett Notman, an analyst with H.C. Wainwright, in Boston. Also helping to boost the stock was SanDisk CEO Eli Harari's appearance on cable channel CNBC Monday, an opportunity Harari took to tout the company's recent licensing agreements. SanDisk also turned in a positive earnings surprise in its second quarter, posting profits of $3.7 million, or 15 cents a share, well above Wall Street estimates. Analysts expect the company to earn 17 cents a share in the current quarter. "This is a company that had a lot of attention when they came public in 1995], but drifted down without having any real problems of their own," Notman said. "Now they've had some good events happen to them, they beat everyone's numbers in the quarter pretty handily, and they've been rediscovered." SanDisk develops flash memory cards for use a variety of consumer electronics products, including laptops, handheld computing devices, cell phones, and digital cameras. By some accounts, SanDisk's CompactFlash product comprised 80 percent of the market for small storage cards in 1996. However, prices for SanDisk's products have been dropping, and a move toward lower-margin products could hurt profitability in coming quarters, the company said in its 10-Q filing last month. You can reach this article directly: techweb.com