Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: jkb who wrote (2381)	1/16/1998 1:56:00 PM
From: Michael A. Gottesman	Read Replies (2) \| Respond to of 60323

Actually, I'm really interested in the royalty figures. Last quarter they carried a substantial royalty income figure forward, not attributing it to the 3rd quarter. If sales were real hot then royalty income must have increased dramatically (as it has been for the last 3 quarters). Will they carry it forward again? I'd like to know. Mike G.

To: jkb who wrote (2381)	1/16/1998 2:05:00 PM
From: JJB	Respond to of 60323

Jay Given the increase in unit sales it would be nice to see earnings follow. With the higher price of CF vs. between Smart Media they should be better. Questions has been posed to SNDK regarding the terms of licensing agreements are answered as confidential. It is very hard to tell what levels of royalties are made from other CF products or if there are royalties from Smart Media or Intel's format. Cross licensing may give them high value in use of others patents in addition to the cash they generate. It would also be nice to see how they intend to spend the $75 million raised in secondary. Production, R & D, marketing can all be treated different from an amortization / expense prospective but all create long term value. Given all these variable I agree that the tone and information of the announcement is going to be as important as the earnings figure. jjb

To: jkb who wrote (2381)	1/16/1998 2:41:00 PM
From: Sam	Read Replies (3) \| Respond to of 60323

Jay, "I just don't trust the Dr. even if they come in w/ good numbers - which they should do. The Dr. is what makes this stock like Las Vegas." This isn't really directed at you personally, so please don't take it way--you were just the most recent post to say something like this. I know we've talked about it a little before on this thread, but I just want to say it one more time, and I will bite my lip forever more. Eli has to tell it the way he sees it--good or bad. Aside from possible lawsuits, it is a question of Street credibility. If he sees a flat quarter ahead, and doesn't say so, then his credibility in the future is impaired. He is, as Michael has reported, trying to build a major company with Sandisk. He might be able to do this with SNDK, and he might not--they have a lot of things going for them, but they also have some very stiff competition. Having this goal, he cannot be concerned with how the stock acts in any given week or month in response to his telling the Street how he sees the next few months. If he were a huckster trying to pump the stock so that he could sell his stake, he would be concerned with this. Personally, I find his candor refreshing and reassuring. SNDK's markets have only just begun to develop. If the Eli is successful his goal, you will have a lot to smile about in a couple of years.