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Technology Stocks : Seagate Technology

STX 270.10

-2.4%

Dec 1 4:00 PM EST

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To: T Bowl who wrote (4503)	1/11/1998 9:45:00 PM
From: stock bull	Read Replies (1) of 7841

My last posting was pertaining to existing investments in SEG, not committing new money. The DD sector is still very risky. Asia has not settled down as of this time. My comments were based on the restructuring plans that SEG has announced and the press release that said the restructuring costs will exceed their original estimates. So, we can expect some big changes within the company. Rumor has it that the sale of high end drives are now starting to pickup...just a rumor that I heard. The price range of $30 to 35 per share with a p/e ratio of 15 would give an earnings range of 2.00 to 2.33 per share. I would certainly believe that the resturcturing efforts will reduce overhead and manufacturing costs. Of course, this should improve profitability without an increase in sales volume. So, given that sales volume pickups within the next 12 months, we should see SEG's profits growing again. Also, I am using the historical p/e value of 15, not some inflated number. Just my thoughts. Stock Bull

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