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Technology Stocks : Seagate Technology
STX 278.47+1.0%Nov 6 4:00 PM EST
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To: duedilly who wrote (7476)9/13/2006 9:33:27 AM
From: go_gatrz  Read Replies (1) of 7841
 
I don't question the value of knowledge. I was questioning why weren't we reminded about the previous two lockup expirations?

Anyway - you're very correct about these lockups skewing the price action on some stocks. One I started looking at some time back in this sector was XRTX. I almost bought some after their last qtr report. The market reacted negatively to a slight miss, but they raised (by alot) the forward guidance. I came real close to pulling the trigger

Upon looking deeper though, their primary holder XTX filed to sell 2.8Mill shares in April, then 3.2Mill in July. There's been alot of confusion (on Yahoo) about whether they've really been selling because they never file Form 4 acknowledging the actual sell. But in looking over the institutional holding reports ended 6-30-06, institutions had a net increase in holdings of 3005447 shares. The total 144 filings to sell over the that qtr equaled 2933500 (XTX & management, short interest is minor through 6-15). So it looks to me that they are indeed selling that unlocked stock, regardless of whether they file Form 4s.

And judging from the continued abysmal price action in the stock, XTX must be selling that additional 3.2Mill shares they registered for in July. Just like NewSAC last year, these large block sells just dry up all the open market buyers, leaving too many sellers. Why buy in the open market when you can get it easily through the back door?
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