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

To: signist who wrote (1830)	11/25/1997 4:22:00 PM
From: Mike Winn	Read Replies (1) \| Respond to of 60323

Hi John, I have bought a few secondaries and have barely learned the mechanics of it. PWAV: When the 2ndary was announced, the stock tanked slightly, so I waited on the sideline. Then they started the 2ndary at around 22, right close to earnings release. After good earnings, the stock jumped and I got in around 30, and then I got out too soon at 40. The stock went to 50 before going down to around 26 today. The stock went down because fundamental has changed. Samsung is their largest customer and there is problem in Korea. Lesson learned: stock will continue to go up after secondary unless fundamental changes. PGNS: This is a biotech stock that I had a while ago. They came out with the secondary around 20 and is now at around 35, never come down lower than the 2ndry. SMOD: I missed the boat on this one. Stock started secondary at 60, went to 90, and now is around 60 again. Perception of the market is PC sales are not going well. MRVC: you're familiar with this one. I got in at 31 and got out at 34 as the stock was declining from the peak at 39. Even though the fundamentals of the company remain intact, the perception of the market is the network sector and sales in Asia are in trouble. Therefore you need to get out in the mid 30 also. So lesson learned: most secondaries of good companies go up in price because of all the promotions they receive. The stock may go down later because it get too far ahead of itself, or the fundamentals may have changed. I discount the dilution factor. I think it's minimal or non existent as good companies always find good use of the money and generate more income from it. So I treat companies that have gone through a secondary the same way as companies that haven't. Sell if the stock gets ahead of itself or fundamentals have deteriorated. Hope it helps. Mike.

To: signist who wrote (1830)	11/25/1997 4:44:00 PM
From: Mike Winn	Respond to of 60323

Hi John, Forgot your other question about Intel restructuring. Intel has always wanted to get into digital imaging. They also want to make flash but their technology lags behind Sandisk. So Intel remains a threat to Sandisk, but also helps Sandisk by promoting digital imaging. I think it's already too late for Intel as Sandisk has already cornered 80%-90% of the flash market for digital cameras and it is not easy to switch format in consumer electronics products. My take is Intel is more concerned about promoting the use of PC for digital imaging that taking over the flash market. But I would not discount Intel completely and will continue to keep a watchful eye on the 800 lb gorilla. Mike.