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

To: Rex Dwyer who wrote (3220)	6/12/1998 12:29:00 AM
From: Binx Bolling	Respond to of 60323

Rex, check out the Ioptics data card (Optical Read Only Memory).

To: Rex Dwyer who wrote (3220)	6/12/1998 5:27:00 AM
From: Jerome Wittamer	Read Replies (1) \| Respond to of 60323

To all, 3 issues : 1) IMHO, the Lexar deal with Kodak and the Viking deal with Canon are blows thru SanDisk's dominance. The fact that these deals occured now is a sign that the market is evolving, maturing and heading towards other sources of CF now that it is a well-known digital storage media. Although SanDisk stands to benefit from the Viking deal, what it gains on the royalty side it loses on the revenue side. This should however be understood in the perspective of a growing market. The same wealth is not shared but greater wealth is shared, the result should be a higher total wealth. After all, this is what SanDisk is looking for, i.e. a mass market for CF solutions with CF clones all around, and I bet they are succeeding : we see more brand names like Kodak and Canon choosing alternative sources for CF, this is almost a clear sign that CF is winning the war against their competitors such as SmartMedia and Miniature Card. SanDisk must thus accelerate its pace now in order to keep up. This expansion of the CF platform should give SanDisk more leverage for the future, notably within the framework of its newest products, in which category nobody will initially be able to compete. I am talking about high-density cards over 60MB using 80Mbit technology. Soon the UMC will use 18æm technology and together with the skills of its R&D teams, SanDisk will be able to release breakthrough products. Assuming high yields can be achieved quickly and cost effectively, it would stand to reap some huge benefits in the first months of live of each new product sold in volume. Product cycles are now 6 months. Which means no time to lose. Thanks to its Taiwan foundry, it should be able to achieve great things. Let's hope they can materialize and deliver. 2) By the way, did you all know that one of the directors of SanDisk bought recently 30,000 shares at $15 and change bringing his holdings to +/- 48,000. That's quite a jump and a big sum of money! There's no better sign of confidence, is there? Would you put your money in a company you know well and which will soon loose a lot of money in a trial or in the market? Sorry I don't remember the name of the director. 3) Now regarding the Lewar lawsuit. Do you remember why originally SanDisk is sueing Lexar ? In case it's no, here's the answer: they were carrying out talks to licence their technology to Lexar and Lexar walked out the talks because financial terms were unfair in the opinion of Lexar. Why would have Lexar sought to licence SDNK technology if it were not already using it or at the least seeking to use it? In the first instance, Lexar should likely loose the battle. In the second one, doubt is allowed. Thanks all for your opinions.