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

To: Rex Dwyer who wrote (1121)	10/28/1997 1:43:00 AM
From: john david martin	Read Replies (3) \| Respond to of 60323

Can't decide between SNDK and MRVC for my next long term purchase any ideas?

To: Rex Dwyer who wrote (1121)	10/28/1997 3:24:00 AM
From: Mike Winn	Read Replies (2) \| Respond to of 60323

Rex, According to the following earnings report, there are currently 24,986,000 shares outstanding: sandisk.com According to the following news, there will be 25,720,573 shares outstanding after the secondary: biz.yahoo.com So there will be ONLY an additional 734,573 shares that will contribute to the dilution!!! Now the million dollar question is where are the 3 million shares for the secondary coming from? According to the IBD, there are 5,800,000 shares in the float, management owns 46% of the total outstanding. Seagate also owns 25% of the company. So: - Management: 46% = 0.46 * 24,986,000 = 11,493,560 shares. - Seagate: 25% = 0.25 * 24,986,000 = 6,246,500 shares. - Float: 5,800,000 shares Total = 23,540,060 shares. The discrepancy between the current outstanding (24,986,000) and this total (23,540,060) is 1,445,940 shares. This could be the shares that the company periodically issues for employees' stock option. Now the big question is where do the 3 million shares for the secondary come from?