Seagate (STX +3.4%) and Western Digital (WDC +2.8%) are outperforming in the absence of major...


Seagate (STX +3.4%) and Western Digital (WDC +2.8%) are outperforming in the absence of major news. The Fly on the Wall suggests takeover rumors are responsible for Seagate's rally. However, the company has reportedly shot down speculation it will again be taken private.

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Comments (4)
  • Michael Bryant
    , contributor
    Comments (7084) | Send Message
     
    Both are cheap on current cash flows. Both are down because everybody knows disk drives with not survive and flash is the future. But when will we move to flash is unknown. Flash drives can only be so big with current technology. So we have to use disk drives, and (WDC) and (STX) are the only two large companies making them. I also think I read that (STX) is investing in flash.
    8 Feb 2013, 12:40 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2086) | Send Message
     
    Both companies. Its not like they are ignorant of the future of HDDs and just going to roll over and die.
    8 Feb 2013, 01:01 PM Reply Like
  • gcolston
    , contributor
    Comments (88) | Send Message
     
    The people that would definately know if there were a buy-out coming are the CEO, CTO, EVP of Operations at Seagate and every one of them is selling off their stock!

     

    Selling this week at Seagate:
    Whitmore, CTO, 40,000 shares on Feb 4
    Massaroni, EVP, General Counsel 50,000 shares on Feb 1
    Then, before that:
    Mosley, EVP of Operations, 215,677 shares! Jan 22
    CEO Luczo, 250,000 shares! Dec 21 2012

     

    These guys are exercising their stock options to buy at very low prices and are then selling them immediately at the current price.
    If the insiders are selling off right now , what should that tell us about how they see the future prospects for STX?

     

    Reuters rates STX at the lowest possible score on insider trading rankings.. a 1 out of 10, and that's not even including this massive sell-off from Jan/Feb! STX overall ranking buy Thomson Reuters has dropped to a 4 out of 10.

     

    Shorted STX today.
    8 Feb 2013, 01:42 PM Reply Like
  • david8263
    , contributor
    Comments (15) | Send Message
     
    You could be right ... here's where my thoughts go ... didn't I hear that certain high rollers are taking advantage of some tax regulation that going to be ending ... I might be way off ... just a thought
    8 Feb 2013, 08:17 PM Reply Like
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