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Sandisk buys M-Flash Systems

Finally the rumors of Sandisk buying M-flash became real - it's good that I did not sold few shares I had in M-flash. I think it makes a great deal since Sandisk buys a good company (except some stock options enquiry) with excellent technology in a growing market and at the same time gets access to critical patents and royalty income stream.

Looks like the pace of consolidation in technology industry is gaining quite a bit of momentum. The article in WSJ on technology industry matruing was really good. Basically it says that technology industry has become matured and has already grown as much it can. Extending this logic, I beleive that market valuations in technology industry is not going to grow to 1999-2000 levels ever (tech industy accounted for 34% of S&P 500 valuation in 2000 - now it's 14-15 %). Maarket would move the valuations from one tech company to another company. e.g. Most of networking industry valuation is concentrating in Cisco whereas some of the internet company valuation is moving from Yahoo, Ebay, Amazon (and to some extent from Microsoft) to Google. Dell's valuation is moving to Apple and Intel's valuation is moving to AMD and SanDisk. So investing in technology in general is not going to be profitable unless one identifies which companies are going to capture market valuations from current leaders and invest in them.

We EWMBA weekend cohort had a get-together at Sateesh's place. Considering it was on Saturday night in summermonth, quite a few folks showed up. It was good to get in sync with what folks were doing in summer months and get ready to go back to school in a month!

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