Mike:
So what you've added to my analysis is that insider holdings (48%) and Seagate's (25%) could easily provide the 5% of stock that my analysis uses as a premise. In fact, they could probably do more, say 5% insiders and 5% Seagate. However, do you think that $105,000,000 secondary offerring is too heady? I do.
Maybe, just, maybe, the company only floats enough new shares to essentially cover offerring costs. That would be too good to be true.
Then question then becomes, if the stock was so good why are the stockholders selling. I can probably give you one reason. Both the insiders and, especially, Seagate probably needs the cash.
Just thinking ahead and painting scenarios, that's all.
Ed Plopa |
