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

To: Michael C. Woodward who wrote (3170)	6/4/1998 12:03:00 PM
From: Ausdauer	Respond to of 60323

Michael, I read in an old post that you were the CFO at SunDisk previously and you have important insight into the company. I hope we don't have to wait too long for a return on our investments. I started following this stock at $25.00 and have seen about 35% of my investment wilt away over a short period of time. The current treatment of SNDK by the market seems a bit overdone. My latest theory is that the company may suffer from conversion of royalty payments from yen to dollars. This effect was not apparent in the last quarter (year-over-year) results, although there was a dip from the fourth quarter of 1997. Prior posts from October of 1997 also state that the royalty and licensing agreements, although confidential, were negotiated in an extremely favorable manner for SNDK. If you have any other thoughts the thread and I would be greatly appreciative. Ausdauer

To: Michael C. Woodward who wrote (3170)	6/4/1998 7:54:00 PM
From: limtex	Read Replies (2) \| Respond to of 60323

Michael - Here is this small company which did a secondary last October, sold by Morgan Stanley I think and at $28 after the stock had dropped from $40. It has performed according to estimates and with over 50% growth rates. It has a big piece of a hugely growing market that doesn't depend on Asia although it buys a lot of its components in Yen. It has very good patent royalties but it does have a patent dispute which is currently in litigation with Lexar a competitor. It has a joint venture with Siemens who are really powerful in Europe. They jointly produce a chip, the MMC, which is the smallest of its kind currently available and Nokia are goig to put it in their new phones. Nokia are a big deal in the mobile phone market in Europe and havin their endorsement is very good news. SNDK is doing something with Qualcomm and something with Micrososft and something with some specialist military hard disk company. They have a very good research team in the US and Israel. They have had a slew of good announcements recently re new trading relationships and by every possible report that has been aired here and on SI the D-Camera market is performing at least as good as people exepcted if not much better. My problem was with all the above why did the short postition increase at almost 50% per month. I mean why should someone reakon that this company of all companies should be set for a drop in its share price of over 40%. I mean wouldn't you have to know an awfull lot about the company to go ahead with a short sell like that. It isn't beyond possiblity that this company might get bought out and then where would a short seller be. Who would have the motivation to short sell SNDK. That is what Iam trying to get at. Regards, L