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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Steve 667 who wrote (12904)	7/14/2000 6:18:04 PM
From: Bargain Hunter	Read Replies (3) \| Respond to of 60323

For months I have been reading all the moanin and a groanin, whinin and a cryin on this thread because Segate was selling large blocks of its shares and this was having an overwhelming negative effect on the stock price. Steve, I found your post to be very amusing. But I can't resist a few comments on the serious issues underlying it. Firstly, as I pointed out recently, SEG sold 6.2M shares during the quarter to Mar not the 12.4M from their SEC filings or the 14.4M you used. Secondly, it wasn't until well after the SEG/VRTS announcement of Mar 29th that it became obvious that SEG was liquidating the entire stake, rather than just taking some profits as the price permitted. Thirdly, people tend to be reluctant to buy into a stock whose price is declining. Everyone waits for smart money to go first. Smart money isn't keen to buy something where a major holder is dumping, even when there is a plausible explanation unrelated to the specifics of the stock in question. Clearly the price would have come down from the March highs even without SEG's selling, but I believe SEG's wholesale dumping had a significant psychological effect and, in this market, psychology counts for a lot.