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Technology Stocks : Seagate Technology

STX 258.21

-1.7%

Nov 14 4:00 PM EST

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To: William Epstein who wrote (7138)	3/24/1999 6:19:00 PM
From: Flan	Read Replies (2) of 7841

Will No specialist firm is going to enter into a 500K share position without already knowing size buyers/sellers are around. They might over the course of the day take down and then sell that much stock but it is all about mitigating risk and preservation of capital. Remember historically on large volume days the role of the speacialist declines because their are more buyers and sellers coming to the market. Also remember that 500K represents $13 million in capital, most speacialist firms make the markets in multiple stocks (some even 70) no way are they going to put that much capital at risk for an extended period of time ie they will not hold it in their books overnight - you can be sure of that!!! One thing to hold on to is that when they enter a position they are as exposed as you and I but they do have the advantage of seeing limit buy/sell orders in their books. If you want my take on the action in the last 20 minutes of trading was that a large sell order hit the floor near the close with not sufficient buyers around - The speacialist probably did step up and buy but also probably sold those positions before 4:00 which might explain how the stock collapsed in the last few minutes. I am taking it in the shorts on this one - I still see SEG as a value play but I guess I am the only one out there. They have $10 a share in cash, little debt, cash flow positive business that generates significant amounts of CFO, they own 30% of vrts which is worth a couple billion and with their large ownership in Dragon which will be a big hit, it just seems like the street is giving no value to the companies disk drive business that is cutting edge. All of these announcements Dell/IBM and IBM/EMC are not great news for SEG but not the death knell either. I cannot believe that this stock is at $26 and certainly looks like it wants to go lower. Good luck to both of us I think we are going to need it - I have just become a long term SEG holder.

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