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

To: jkb who wrote (1975)	12/6/1997 5:14:00 PM
From: Michael C. Woodward	Read Replies (2) \| Respond to of 60323

Jay, in my last life, I had 30+ years in financial management in high tech. Although I was primarily at the divisional or subsidiary level, management constantly drilled us on the importance of accurate reporting and no surprises. Dr. Harari is a good guy and is doing what is best for the company. I know there has been a lot of disatisfaction on this thread with his PR, but you have to take a conservative posture now adays. It is an unfortunate fact that expectations for companies are often set by Wall Street analysts and the companies have to measure up quarter by quarter and can't focus on long-term growth. An other issue that high tech companies have to contend with is the reality that litigation between stockholders and high tech companies has increased significantly in the past year. There is a lawyer in San Diego who is driving Silicon Valley nuts with law suits. Have you noticed how defesive 10K's have become in the last year? It's now pretty difficult to wade through the defense to determine whether or not you want invest in a company. BOTTOM LINE - I agree with the major players on this thread - Sandisk is going to be a great investment in 1998.

To: jkb who wrote (1975)	12/6/1997 9:05:00 PM
From: limtex	Respond to of 60323

Dear All - I have been thinking about this question of "hype". 1.Elli, the Management and the investment bankers new that the company was going to institute a secondary to raise cash. 2. They know how good the next years numbers are going to be and they know the relative strength of the competition. 3. The stock was up to about $30 just before the secondary and the secondary was eventually priced at $28. 4. The stock has subsequently sunk as low as $22 and is now at just over $23. 5. The question must be "what would have happened if we had had a little more "hype" before the scondary?" Suppose the "hype" had drive the share price up by a marginal $1... would the secondary have been priced at anything over $28 and therefore the dilution factor reduced? Now that is something of interest ot all of us. The answers to these questions must of course remain hypothetical but for those in the investment banking business and shareholders of companies so engaged. So it is thecase with the share price if an offer were to suddenly appear. Take the case of ASND currently. In the doldrums at mid-low $20s and then along comes a rumour about a bid from LU at a price in the mid thirties. Company doing marvellously after an indifferent beggining of the year but those who bought at $70 are'nt so impressed with the takeover rumour...... This kind of approach may not be appropriate to all companies but for those in the relatively rare postition of SNDK they can IMHO afford to take a slightly more bullish position... slightly ...that's all I said.