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

To: Craig Freeman who wrote (3466)	7/4/1998 10:31:00 AM
From: TimC	Read Replies (1) \| Respond to of 60323

Good Morning, I just couldn't resist any more. I've been reading the posts on Sandisk for about a year and just had to jump in now. Much of what I have read makes sense and is very interesting. But recently, I think emotions are speaking, not reason or logic. I am not, by any stretch of the imagination, an expert in the stock market. My teen age son convinced me to invest a year ago and now I have the bug. Like some that post here I have, on paper, lost significantly on Sandisk. I bought and sold several times. My latest buy in was $23 and $19. See how much I know. The whole scenario ( Sandisk ) just doesn't make sense to me. Here are some of my observations and questions: 1. Within the last 4 months Sandisk has hired two experienced men as additions to their senior management staff. Ken Edoff ( VP Sales Americas ) & Yoram Cedar ( VP Systems Engineering ). If business were going south, why would the company "staff up"? If this were not a growth opportunity, why would these two men join? Look at their backgrounds, they are not new to the business. 2. If I am reading the First Call correctly, Sandisk was up +89% (EPS) in the first quarter this year as compared to last year. For the second quarter this year, they are estimating a drop of 73% as compared to the second quarter last year. This is a huge swing. What major event happened? The only thing I can think of is a write down of some sort. Maybe inventory? If this were the case ( a one time write down ) wouldn't that make the rest of the year much more profitable (as they sold off this inventory at lower cost of goods)? 3. In regards to insider manipulation, I seriously doubt it. There are about 9 to 10 million shares owned by the select few. Of these only 84,000 were sold off during the last 6 months ( not even 1% of total ). During this period the stock went up to $25+ and down to $13+. If you were Eli Harari, sitting on over 1 million shares and knew something was fundamentally wrong, would you wait around to see your net worth drop by over $12,000,000 ??????? These are just a few of my observations. I'll wait to see if anyone has any answers or rebuttal to the above. The only fact I know for sure is that the whole Stock Market is irrational most all the time. "Sell on good news, buy on bad" Figure this one out.......