<Mark, most posters think QNTM's stock value lies in the DLT tracking stock. If you buy QNTM now, you get the DLT tracking stock when it's issued, and then you can decide on whether to hold on to the disk drive portion...>
Yeah, on the surface it just seems like such an obviously good deal and yet the market isn't taking it. That's got me worried. Of course, this is the time you make money investing.
It looked like we were to have some strength in the sector with Seagate leading, but it appears Seagate's lead is based on their share repurchase program.
So again, the sector doesn't really have any juice to get it going. I think buyers are holding back because of Y2K concerns. Otherwise, why wouldn't you want to buy now to get the DLT tracking stock? Even if the hard disk drive shares were worthless, you probably still make money, but at this price $6 for the HDD business doesn't seem to high.
If Quantum does succeed in making this split, the really see them going into acquisition mode? I know people been talking about their buying Maxtor, but they couldn't do it after the tracking stock split.
They couldn't use DLT shares which might have dramatically increased in value to buy a hard disk drive company. So, if they really did want to do a deal like this, it would seem like they'd have to do it before the tracking stock split took effect.
Regards, Mark |
