Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: kash johal who wrote (3424)	7/1/1998 4:38:00 PM
From: phoenix	Read Replies (1) \| Respond to of 60323

Maybe SNDK cannot succeed in the retail commodity market. But, have you considered the 10% ownership of the USIC plant in Taiwan that should start to produce later this year? I would hope that this would allow SNDK to appreciably reduce costs. One another subject, I saw an ad for Fry's this morning. Digital Camera flash memory card upgrade, 8MB for $45. That's the lowest price that I have seem. I assume the ad referred to CF but it wasn't clear. Also, the manufacturer was NOT listed in the ad. Roger

To: kash johal who wrote (3424)	7/1/1998 5:35:00 PM
From: Craig Freeman	Read Replies (2) \| Respond to of 60323

Kash, I agree with you. Companies should do what they do best and SNDK's forte is in getting companies to adopt CF. As you stated, making chips is an entirely different, intensely competitive business. Until the inventory writedown, I had considered SNDK's fab investment as a necessity for testing products and wetting market appetities. All this talk about obtaining chip cost reductions leads me to question their direction. IMHO, the best strategy would be to buy/merge with anyone who develops a better mousetrap and license the technology to the world. Unfortunately, the big gun (Lexar) refused to sell. Silly as it sounds, SNDK might be better off settling with Lexar that if Lexar pays royalties, SNDK will stop making chips and start reselling Lexar products! Craig Craig

To: kash johal who wrote (3424)	7/1/1998 6:58:00 PM
From: Ausdauer	Read Replies (1) \| Respond to of 60323

Kash, My question was why 2 to 4 times current royalty revenues would discourage you from investing. That was the contention of your original post. The policy of the company, as mentioned in the annual report, is to promote CF as an industry standard. They are the inertia behind the formation of the CFA. Additionally, the company is felt (at least by one investment house) to be a new breed of "FAB-less" semiconductor producers. The company realizes it is at the mercy of a wafer supplier, thus their recent investment abroad. My interpretation is that they need some capacity to meet OEM production for camera makers like Kodak and Canon, and perhaps for MMC in the not too distant future. Admittedly, they have not done well competing head-to-head with other producers of CompactFlash cards. I do not disagree on this point. Ausdauer

To: kash johal who wrote (3424)	7/2/1998 8:09:00 AM
From: Jerome Wittamer	Read Replies (2) \| Respond to of 60323

Dear Kash, Your posts were VERY good. I almost totally subscribe to what you said. Thank you Kash. I do sincerely hope that everybody here read your comments thoroughly for they are fundamental. Rex already pointed out that Hitachi is the beast in this game. They have the power and financial capabilities to crush SNDK both in terms of innovation and competitive prices. Their connections within the industry are also more efficient than SNDK's. When SanDisk releases a new product, they always come out with a better one and usually, it's already available whereas SanDisk's are 'due to issue samples the next quarter'. You're all going to say, how do you know, Hitachi doesn't make much PR in this area? Well, the industry knows, and that's the more important. Hitachi WANTS to be the leader. Nobody heard Hitachi works on a technology similar to MMC? (Just asking). This would be no surprise, it's consistent with their goal. So, as Kash said, SanDisk better refocus its strategy and bail out of UMC. Anyway, I don't like the way the company has been playing with our money. Limtex, you repeated many times that SNDK should be kept private. The thing is they're not. However, Eli continues to act without the slightest respect for its shareholders. Look at his wealth and that of its directors. It increased tremendously since the company IPOed and did the Sec. They don't give a sh*t to making money and create shareholder value. By building a solid 10Q they secure an immunity to insider trading and misrepresentation of facts but that's forgetting we are not the dumbest shareholders on earth. They did misrepresent facts and made insider trades the recent purchase by a director could just be an alibi. The scheme is figured by smart people and will be hard to fight but there are so many things which hint that my assertions are correct. As you said Kash, Eli is brilliant but he's greedy and selfish. I bet my reputation on this thread that the company will be the subject of a class-action lawsuit within the next 2 years, if not sooner. We should all be working hard to have him fired. To wake up your instincts, remember Dr Eli's words last November when he KILLED the stock.