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

To: Jim Cash who wrote (2395)	1/18/1998 5:43:00 PM
From: Michael C. Woodward	Read Replies (2) \| Respond to of 60323

Regarding statements by Dr. Harari You statement "Are you saying that if I held a key management position that I wouldn't open my mouth if someone did something boneheaded at a company that I had a stake in". What is the basis for that statement? What specifically was said by SanDisk management that you consider boneheaded? Dr. Harari has said that "We are trying to build a major company, here, thru our performance rather than hype". What you must understand is that public companies have to be cautionary and avoid surprises in the marketplace. There are two reasons for this. First, Wall Street analysts and investors just don't like surprises. Secondly, there is the issue of litigation. During the past two years, high tech companies in Silicon Valley have experienced an inordinate amount of litigation by disgruntled stockholders. I left senior management, in Silicon Valley, in 1990. Stockholder relations are significantly more difficult today than when I was in the business and I understand why a CEO has to make cautionary statements today. If you want insight into management's perspective on this subject, I suggest that you review the ORACLE thread. Read the message from Dan Zimmermann (#5089). Dan has inserted a copy of a letter to Oracle employees from Jeff Henley, Chief Financial Officer. Per Jeff Henley, "A month has passed since we announced our Q2 financial results which showed that our revenues grew 23% in dollar terms, profit was $187 million, slightly higher than last year's Q2, and cash flow was very strong with cash and equivalents ending at $1.7 billion. Oracle's stock dropped sharply the next day on record trading volume. Within weeks Oracle was named in a class action securities lawsuit claiming we knowingly misled investors (we missed earnings expectations by 4 cents per share)."