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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: areokat who wrote (26206)	6/12/2000 2:44:00 PM
From: Apollo	Read Replies (1) \| Respond to of 54805

SNDK.... maybe you know why Seagate sold their holdings in SanDisk Seagate needs cash. Message 13825620 Apollo

To: areokat who wrote (26206)	6/12/2000 3:52:00 PM
From: StockHawk	Read Replies (1) \| Respond to of 54805

>>why Seagate sold their holdings in SanDisk<< Seagate was a very interesting situation. Although their stock price kept falling, the value of their holdings in other companies kept rising. The per share value of their holdings exceeded the value of their stock. Value players, like Sanford Bernstein, were buying Seagate and looking for a return. It became a real issue about how to realize the value of the holdings without undue tax consequences. The CFO was looking for solutions far and wide, I even saw one story where they said he would pay a bounty for the best idea. They wanted to sell their stock holdings to reap the profits, but perhaps selling too much too fast drove prices down. Anyway, the point is, it was not a strategic decision, it was a financial one. StockHawk