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

To: rll who wrote (4559)	1/28/1999 12:46:00 AM
From: Craig Freeman	Read Replies (2) \| Respond to of 60323

rll, I may have posted this story previously but it's still a good read. In mid-1997 an investor posted on the WDC thread that he had invested 100% of his retirement funds, a considerable sum, into that one stock. And with its rise from $10 to $50 in little more than a year, he was flying high. A rich man. I wrote cautioning him to diversify, to some money off the table to create a "nestegg" of sorts. Rainy day money. He responded privately to say that he would consider the matter. A few days after that he wrote that he had complete confidence in the company and that he was leaving on a long vacation to celebrate his good fortune. The following day WDC started a continuing freefall from which it has yet to recover. The gentleman never wrote again. It is always wise to expect the unexpected. Consider what your net worth will be the day after this headline appears in the WSJ: "SanDisk CEO found dead of apparent suicide as SEC regulators close in on accounting irregularities". Is it likely? No. Could this or something equally bad happen? Yes. Regardless of how you may feel about SNDK, it is in fact a stock with a P/E similar to Microsoft's but with falling reported earnings. SNDK's current price is based on speculation of future earnings that may never materialize. IMHO, anyone holding this baby on margin should count his blessings and sell enough shares to pay down the loans. If you do this and SNDK goes on to $1,000 a share, you will still be rich. And if it falls to $5 a share, you will still be in the game. Craig