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Technology Stocks : Seagate Technology - Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Z Analyzer who wrote (1619)	4/2/2000 7:11:00 AM
From: Gus	Read Replies (1) \| Respond to of 1989

Questions, questions, more damn questions. Curious coincidence We had a bunch of news overnight that is worth discussing. A story I'd like to focus on is Seagate going private and Seagate shareholders getting Veritas stock in cash. Stripped of the niceties, the net of this is some smart buyers are getting the Seagate disk drive business for what looks to be a bargain price, and a whole lot more Veritas stock is going to be foisted on the market. In normal times, if one looked at that deal and looked at a high-flying stock that was about to have its float expanded dramatically, one might think the price would go down. And in normal times, one would be correct. What appears in my opinion to be the glue in the whole deal, which was not discussed in the article in the New York Times or the Wall Street Journal, was that right on cue, about half an hour after the deal was announced, the S&P 500 hall of fame induction committee said that Veritas had gotten the nod and would be inducted. So based on that, Veritas was able to trade higher last night and initially this morning. Then both Veritas and Seagate sold off such that big gains from last night were more or less halved. My expectation is that once the S&P index funds have their fill of Veritas, probably by tomorrow night at the end of quarter, that stock is likely to get spanked. It will be interesting to see if that happens. What I want to know is, what did the S&P committee know and when did they know it, and did the folks who organized this deal have any advance knowledge of what the S&P committee was about to do? Possibly it was just coincidence, but it does seem surprising that it could happen all at once. In any case, Manny, Moe and Jack, a.k.a. the Pep Boys, got booted out and Veritas is in. siliconinvestor.com