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

To: JJB who wrote (2874)	4/23/1998 3:41:00 PM
From: Sam	Respond to of 60323

*** OT--on downgrade of SEG's debt *** Yeah, I saw that when it came out. It was inevitable, given the sector conditions, surprising only that it didn't come sooner. If anything, it is probably a contrarian indicator for the company, though. It will take a couple of quarters to see, but in any case, it shouldn't affect SNDK in any way. I seriously doubt that SEG would sell their stake at this point, even if they won't add to it--too busy buying more Dragon Systems. If they actually get into a crunch--which is unlikely without an even more serious downturn in the drive business--they would sell their software business first, which would probably bring a billion dollars or maybe even a little more. They are going to sell a small stake in it to the public later in the year anyway. Not so much to get cash, but to get it publicly traded and valued, so that analysts will know better how to value SEG's remaining stake.