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Seagate Technology Public Limited Company Message Board

  • v1kes_won v1kes_won Jan 14, 2009 10:46 AM Flag

    Another STX Trading Scam

    Having been there and done that and not to mock the pain many will feel in the week ahead, it now appears STX investors have been robbed by another well orchesrated trading scam.

    It began with Kramer warning everyone about "massive" layoffs at STX last Friday after the close. Today, it appears STX is letting go 6% of its worldwide worforce. A few weeks ago WDC cut 5% of its staff with far less paranoia and investor reaction. BTW, Kramer went public with his sell recommendation before there was any public comment from Seagate. The Reuters article quoting a 10% reduction came out hours after Kramer's comments. So somebody slipped Kramer the mis-information.

    While some might say the management change sparked the sell off, for how many months have we read posts asking for Watkins head? Also, is there anyone better to replace Watkins and doesn't Luczo's appointment raise the possibility of a take-out a couple of notches??

    As usual with any major STX news, the traders first reaction is to sell, the glass is always half empty.

    As to other motives for the scam, IMHO look no further than the option crowd. On Friday, there were over 70,000 Jan call options listed, 15,000 at $7.50 or below I have seen this for years. They run it and write the calls for a nice premium and then run it down to make the contracts expire worthless.

    Well, it looks like the whole market will be testing the October lows. No surprise given the crappy reports the market expects to get in the weeks ahead. It's bunker mentality unitl early February, then the sunshine, recovery boys will reappear for another run up to 9,000 on the Dow.

    That's how the game is played!

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