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

To: Mike Winn who wrote (1236)	11/2/1997 10:21:00 AM
From: Jerome Wittamer	Respond to of 60323

Thanks for your posts Mike, I think we all agree on your ten reasons. As regards, the upcoming announcement, I did not forget it. It is mentionned in my report, but I'll let Rex tout the deal. Please note that nothing official has been released but the announcement of an announcement, so we don't know the details nor impact of the news. Of course it will be very positive but who knows HOW positive? It should be big but HOW big? SanDisk has already Samsung,Toshiba, Intel Hitachi and Sharp on their knees, so if you add just a few world leading telco it might not make that big a difference...Yes please call me Eli, Eli Harari :-). Am I too conservative? Wait for wednesday. IMHO, your point #8 is no longer correct since SNDK has invested $45M in the UMC joint-venture semiconductor manufacturing facility. Jerome

To: Mike Winn who wrote (1236)	11/2/1997 1:13:00 PM
From: Mike Winn	Respond to of 60323

Correction - Typo In post #1236, I said: 6) This company has proven to be very shrewd in negotiating deals. Company secured higher than normal royalty rate (in the order of 10% compared with 3%-5% industry standard). Witness Sandisk getting Samsung on their knees through court litigation and signing up Toshiba , Sandisk's customer. I meant: "Witness Sandisk getting Samsung on their knees through court litigation and signing up Toshiba, Samsung's primary flash partner". See this article: techweb.com ================ In point #8: 8) Company is fab less => no need for a lot of capital expenditure. I meant that Sandisk doesn't have their complete own fab, but for instance, invested 45M in the UMC joint venture in Taiwan. Sandisk also has strategic alliance with NEC and MEC to build the flash chips. It costs much much more to build a complete fab from scratch, something in the order of several hundred million of dollars. ================ If I recall correctly, there was an article in EETimes a while ago detailing the partnership between Sandisk and Siemens. I go back and do a search but can no longer find the article.