Chanos Betting Against Seagate on Less Demand for Hard Disks
“We think that mean reversion will happen in this business, sooner rather than later,” he said at the Sohn Investment Conference in New York today.
Seagate shares, which closed at a record $42.32 today in New York, fell 4.3 percent in electronic trading. The shares have advanced 39 percent so far this year.
Chanos said there is a lot of insider selling at Dublin-based Seagate. The hard-disk drive business is suffering as the amount of disk storage exceeds demand and that cloud computing is more efficient for personal-computer users, Chanos said.
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