CB,
re: < VA Linux (LNUX) warns & drops 42%, guess who sold in October? INTC!
INTC, a 10% beneficial owner which would mean around 5 million sh., sold 852,500 sh. in October for $28.8 million (avg. of $33.87/ sh.), according to Yahoo insider sales link below: biz.yahoo.com
Looks like they sold just in time. Intel's remaining holdings in LNUX took a beating today! It dropped $12 5/8 to $17 3/8. Too bad they didn't see the warning coming, they could have unloaded some of their stock ... oh yeah, never mind. We might peek back in a few days to see if any more sold 11/1 - 11/3. >
You are right with your information. Intel still has about 2,600K shares left.
< Notice they waited until after September (hint 3Q00). Don't expect them to sell any more for a while as it may make it hard to reach their 4Q capital gain goal. They were carrying it at about $250 per share (per the link you posted a month or two ago.) >
Intel invested in LNUX just before it IPOd. LNUX IPO price was @30/share. So Intel might have gotten the LNUX stock at $25 - $30.
If we take $25/share as Intel cost, the Q3'00 non-realized gains (Sep 30, 00, LNUX was @47.50/share) must have contained about $80M unrealized gains from LNUX shares.
Out of that, they realized about $7.5M. Now, if they sell the remaining LNUX shares, they will have a loss of $18M (I'm sure they will dispose them because no way this stock is going to recover - very limited market).
This means that the part of $80M unrealized gain contained in the Q3'00 Intel capital is now worth $10.5M loss as of today.
goutama |
