Nach all der Verarsche der letzten Jahre, warum wollen Leute sich
jetzt bei einem IPO zu überhöhten Preisen abzocken lassen, wenn sie
vergleichbares (bzw. nach meiner Meinung: BESSERES!) lässig eben mal
so im täglichen Handel ordern können?
Seagate IPO offers risks, rewards
Fund manager sees the deal as expensive
By Steve Gelsi, CBS.MarketWatch.com
Last Update: 4:48 PM ET Dec. 10, 2002
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NEW YORK (CBS.MW) -- Seagate Technology is resisting attempts by institutional investors to bid the price down below $12 per share, and IPO trader said late Tuesday as the $1 billion deal was getting ready to go to market.
The word is the company won't take below $12 per share," said Sal Morreale, an IPO trader for Cantor Fitzgerald.
Investors are attempting to get a discount below the $13 to $15 price range in the wake of a report in Barron's that insiders on the deal paid less than $2 per share to take the disk drive maker private two years ago, Morreale said.
"The IPO will probably get done, but it'll just get done, and that's it," he said.
Seagate (STX: news, chart, profile) is attempting to price 72.5 million shares for a debut on Wednesday in a bid to raise $1 billion with a host of underwriters including Morgan Stanley and Salomon Smith Barney.
Investors will be asked to pay a premium if they want to buy shares of the IPO, a tech fund manager said.
Disk-drive maker Seagate Technology will have a market valuation higher than peers such as Maxtor (MXO: news, chart, profile) and Western Digital (WDC: news, chart, profile) at its proposed price range of $13 to $15 per share. See full story.
Paul McEntire of the Tech Plus Fund (TPFQX: news, chart, profile) told CBS.MarketWatch.com that the IPO price will be three times the valuation from where Seagate went private in 2000.
"I would be inclined to pay about half its IPO price. That, at least, gives them credit for improving their net income," McEntire said. See Net Sense column.
Seagate's revenue is also expected to stay flat at $6 billion in 2003 in the face of a risky tech sector. That's nothing to cheer about, either.
Seagate has been in the headlines lately as one of the more high-profile tech players on the West Coast returns to publicly traded status after two years.
Rival Maxtor provided a bit of a lift to the disk-drive sector on Tuesday after it raised its fourth-quarter outlook. Shares jumped 24 percent.
One of the architects of the Seagate IPO is Silver Lake Partners, which helped take the company private in November 2000 in a deal with Veritas (VRTS: news, chart, profile).
The transaction was first announced in March of 2000, when Seagate was valued at about $20 billion.
Under its current IPO terms, Seagate will have a market cap of about $6 billion based on 426 million shares at $14 each.
Known as one of Silicon Valley's oldest citizens, Seagate was founded by Al Shugart.
It's still the worldwide leader in the design, manufacturing and marketing of hard disk drives for PCs and main frames. It supplies disk drives to the Microsoft (MSFT: news, chart, profile) Xbox, and held a 28 percent share of the overall disk drive market for the six months ending June 30.
Saddled with price pressure, low margins and lower profits, Seagate has suffered the fate of many others in the tech business since the bursting of the tech bubble.
The IPO has plenty of fans. Renaissance Capital, which runs the IPO Plus Fund (IPOSX: news, chart, profile), said Seagate has been boosted of late by cost-cutting, new technology and market share gains under CEO Stephen Luczo, an ex-banker from Bear Stearns.
"While investors may balk at the insider payments and be living with bad memories of investing in disk drive companies, Seagate is poised to profitably grow in a more sane industry environment," Renaissance said.
Steve Gelsi is a reporter for CBS.MarketWatch.com in New York.
§
jetzt bei einem IPO zu überhöhten Preisen abzocken lassen, wenn sie
vergleichbares (bzw. nach meiner Meinung: BESSERES!) lässig eben mal
so im täglichen Handel ordern können?
Seagate IPO offers risks, rewards
Fund manager sees the deal as expensive
By Steve Gelsi, CBS.MarketWatch.com
Last Update: 4:48 PM ET Dec. 10, 2002
§
NEW YORK (CBS.MW) -- Seagate Technology is resisting attempts by institutional investors to bid the price down below $12 per share, and IPO trader said late Tuesday as the $1 billion deal was getting ready to go to market.
The word is the company won't take below $12 per share," said Sal Morreale, an IPO trader for Cantor Fitzgerald.
Investors are attempting to get a discount below the $13 to $15 price range in the wake of a report in Barron's that insiders on the deal paid less than $2 per share to take the disk drive maker private two years ago, Morreale said.
"The IPO will probably get done, but it'll just get done, and that's it," he said.
Seagate (STX: news, chart, profile) is attempting to price 72.5 million shares for a debut on Wednesday in a bid to raise $1 billion with a host of underwriters including Morgan Stanley and Salomon Smith Barney.
Investors will be asked to pay a premium if they want to buy shares of the IPO, a tech fund manager said.
Disk-drive maker Seagate Technology will have a market valuation higher than peers such as Maxtor (MXO: news, chart, profile) and Western Digital (WDC: news, chart, profile) at its proposed price range of $13 to $15 per share. See full story.
Paul McEntire of the Tech Plus Fund (TPFQX: news, chart, profile) told CBS.MarketWatch.com that the IPO price will be three times the valuation from where Seagate went private in 2000.
"I would be inclined to pay about half its IPO price. That, at least, gives them credit for improving their net income," McEntire said. See Net Sense column.
Seagate's revenue is also expected to stay flat at $6 billion in 2003 in the face of a risky tech sector. That's nothing to cheer about, either.
Seagate has been in the headlines lately as one of the more high-profile tech players on the West Coast returns to publicly traded status after two years.
Rival Maxtor provided a bit of a lift to the disk-drive sector on Tuesday after it raised its fourth-quarter outlook. Shares jumped 24 percent.
One of the architects of the Seagate IPO is Silver Lake Partners, which helped take the company private in November 2000 in a deal with Veritas (VRTS: news, chart, profile).
The transaction was first announced in March of 2000, when Seagate was valued at about $20 billion.
Under its current IPO terms, Seagate will have a market cap of about $6 billion based on 426 million shares at $14 each.
Known as one of Silicon Valley's oldest citizens, Seagate was founded by Al Shugart.
It's still the worldwide leader in the design, manufacturing and marketing of hard disk drives for PCs and main frames. It supplies disk drives to the Microsoft (MSFT: news, chart, profile) Xbox, and held a 28 percent share of the overall disk drive market for the six months ending June 30.
Saddled with price pressure, low margins and lower profits, Seagate has suffered the fate of many others in the tech business since the bursting of the tech bubble.
The IPO has plenty of fans. Renaissance Capital, which runs the IPO Plus Fund (IPOSX: news, chart, profile), said Seagate has been boosted of late by cost-cutting, new technology and market share gains under CEO Stephen Luczo, an ex-banker from Bear Stearns.
"While investors may balk at the insider payments and be living with bad memories of investing in disk drive companies, Seagate is poised to profitably grow in a more sane industry environment," Renaissance said.
Steve Gelsi is a reporter for CBS.MarketWatch.com in New York.
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