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

To: limtex who wrote (12946)	7/16/2000 6:37:15 AM
From: Sam	Respond to of 60323

A little OT: why Seagate is dumping Sandisk stock Limtex, <<I mean they seem ot me to be just dumping the stock. Are they terribly short of cash? Why else would anyone in their position do this?>> It's a long story, but the short version is this: Seagate management plus a few outside investors are buying the disk drive/tape drive/software parts of Seagate for a very low price (somewhat less than $2 billion, or about a PSR of .3 on depressed sales), while spinning off to shareholders their stock in Veritas. This colossal ripoff of stockholders means that Seagate management is entirely focussed on getting this deal done, as they will probably make about 10-15 (if not more) times their money in 3-5 years when they sell the company back to the public. For complicated reasons, cash right now is more important to both them and to Veritas than stock in Sandisk, LHSP, ZOOX, or VECO (all of which Seagate owns), in fact those holdings actually introduce a speculative element into the deal which they both would rather avoid. So, yes, they are just dumping stock, even though they don't "need" the cash--they have over $2 billion in cash as of 6/30 (and more now, since they have continued to sell more equity holdings, and they have positive cash flow in their operations). What they "need" to price the deal is stability in their holdings. If you really want details, I suggest you go to the Seagate Fundamentals thread, and start reading from about March 30 or so on, when the Seagate/Veritas deal was announced. Or read their proxy statement, filed on July 13, though that can be a daunting document, and you get a better picture of what they are doing, IMO, from the Seagate thread. See especially Gus's posts, though there are a lot of fine posts there as we were trying to figure out what this deal meant. But one thing you should not do is think that Seagate's dumping has anything at all to do with Sandisk. It doesn't. It has to do with the remarkable greed of Seagate management/BOD, and some outside investors who are capitalizing on that greed to manipulate the market and steal a company from public shareholders. Sam

To: limtex who wrote (12946)	7/16/2000 10:59:46 AM
From: Starlight	Respond to of 60323

Not that this has had anything to do with the SNDK selling, but here's something to ponder before you make an investment in any high-tech company: California (specifically San Diego and southern Orange Counties are the first in the nation to pay true market prices for electric power under deregulation. (I have seen my electric bill double in the past month.) Think about how this will impact high tech companies that have to keep clean rooms at a certain temperature. This story has more:

To: limtex who wrote (12946)	7/16/2000 11:02:11 AM
From: Starlight	Read Replies (1) \| Respond to of 60323

This MAY have had something to do with the SNDK selling, but even if not, here's something to ponder before you make an investment in any high-tech company: California -- specifically San Diego and southern Orange Counties -- are the first in the nation to pay true market prices for electric power under deregulation. (I have seen my electric bill double in the past month.) Think about how this will impact high tech companies that have to keep clean rooms at a certain temperature. This story has more: union-tribune.com Betty