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To: Jerome Wittamer who wrote (3324)	6/19/1998 7:56:00 AM
From: Jim Cash	Read Replies (2) \| Respond to of 60323

Re: Jerome I think we all should understand retracement levels by now but this situation is very different. The 40 % run up was not natural, it was due to the news releases put out by SNDK on the 16th and 17th... Do you think anyone in the world is naive enough to believe that the details of yesterday's announcement were not known prior to those releases. How do you account for the 450 July 17 1/2 put contracts that traded yesterday (Nearly 40 times the open interest prior to that day)? I think the news on the 16th and 17th was a calculated move by SNDK to give certain privelaged shareholders a chance to get out while those that bought on the news get caught holding the bag. This is a classical Pump and Dump that is typical of an OTC BB stock not a respectable comapany... I held SNDK last year and got out in Oct. I bought again yesterday morning at 19 on what the company led me to believe were brighter prospects. I always take responsability for my actions but in this case, I feel I was intentionally misled by the company as to their prospects... I think an investigation is in order here and criminal charges should be filed if warranted. Certainly civil charges will be.

To: Jerome Wittamer who wrote (3324)	6/19/1998 9:34:00 AM
From: Yakov Lurye	Read Replies (1) \| Respond to of 60323

Jerome, The trading pattern in the last few days was definitely abnormal. Unfortunately for me, I sold only my trading shares yesterday morning and got stuck with the major position @20. I can't say that SNDK is dead. This quarter wasn't expected to be good. I could live with the notion of falling ASPs (these could be partially overcome by transition to larger cards); also they'd, in all fairness, mentioned before that licensing revenues will be somewhat below 1Q. So one quarter results do not matter this much. The trend, however, matters a lot. What we have failed to realize is that the demand for flash card is much lower than expected with (according to SNDK current statements) prospects still cloudy. This is where I personally had made a mistake, largely based on May statements to ML analysts - "the beginning of the quarter was bad, but the demand had firmed considerably", "at least $40M in revenues" (which is BTW 25% more than previous Q results). So to me the real bad news here is that they still do not see any material improvement in industry-wide demand. This is what is going to hurt us badly today. Ironically, some analysts may wait a bit and then start pushing the stock predicting a turnaround for Christmas. However, if SNDK misled the analysts (especially ML), this stock will be punished severely and will langusish even if/when the results improve. Not a good day for us longs... Regards, Y.