Lock-Up Expiry Shock: SanDisk & Western Digital Investors Caught Off Guard

$SanDisk Corp.(SNDK)$

$Micron Technology(MU)$ 

$Western Digital(WDC)$ 

$Seagate Technology PLC(STX)$ 

A lot of SanDisk (SNDK) and Western Digital (WD) investors overlooked something important until yesterday.

The original shareholders from last year’s listing whose lock-up period expired on March 20 are now free to sell their shares. These early investors, including executives and employees, have extremely low costs some below $1 or $2, even effectively $0. Now they can sell at prices above 700.

As for lock-up expirations, I went through the entire experience with Circle Internet Financial it was a painful lesson. After the first lock-up expiry, the stock fell from 150 to 90. Remember, Circle had already dropped from 298, so even buying at 150 (half price) could still mean a further 40% loss. After the second expiry, it dropped again from 90 to 49.

Why didn’t early shareholders sell at 298, but were willing to sell at 50, 60, or 70? Because their cost was only $1 or $2 and for employees and executives, essentially $0. Any price is a profit.

For SanDisk and Western Digital, I don’t hold positions, but I’ve been watching the March 20 lock-up expiry closely. Meanwhile, many retail investors who bought in seemed completely unaware of this major event even after Micron Technology dropped sharply yesterday.

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