Art,
I don't think it affects Sandisk. He is only shorting Veritas, it is the only one of Seagate's holdings which is large enough to affect Seagate's share price, though since Seagate's stake in Veritas is larger than their market cap, it doesn't seem to be affecting it very much, and Seagate's drive bizz is getting a negative value at today's price.
I do think that perhaps this has to do with Seagate selling a million shares though. Perhaps that was the million that was sold on Friday. I know that Seagate said that they were going to get about $68 million for it, so it would make sense that the shares went off for something a little more than $68/share (the investment banks and brokers have to get their cut too for arranging it all). I'm not worried about the price staying in the 60s, it is actually a good thing for awhile. We based a little in the 50s before the secondary, now lets do some work in the 60s, and get ready for the earnings report in January. It should be a very good one, with good backlogs and pricing to report, as well as triple digit revenue gains y-y, I would expect. I would also expect that barring any general market swoons or Y2K problems in Jan/Feb, we will go to new highs then, and split at least 2 for 1. IMHO. Sam |
