Seagate Technology - Fundamentals Message Board

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Technology Stocks : Seagate Technology - Fundamentals

STX 287.64

-6.6%

Dec 12 9:30 AM EST

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To: Sam who wrote (1033)	7/19/1999 12:19:00 PM
From: Mark Madden	Read Replies (2) of 1989

The "mystery man" may be absurd but he is right about one thing. SEG wants to buy their own stock. Maybe the CC was part of a strategy to get the price down to where they could get more shares for their investment.The Veritas deal kept them from meeting their previous buy back goals so they will begin that program this quarter. The CC had a strange tone of arrogance. SEG has no visibility of the future demand or pricing but if things continue they will have two bad quarters that will put them in a better position. This is because they are forced into a price war that will cause dislocation or technology losses of competitors. They have the leading technology, the broadest product line, the most money, the lowest production costs, equal time to market, and any company that competes with them will be losing money. Four companies are striving for 30-40% market share but only SEG deserves it. Some companies had the nerve to under price SEG last quarter. They will pay for that. Is SL warning other companies not to compete with SEG? IMO SL thinks a price war threat will drive the price down short term to benefit the buy back plan. It will also warn potential investors not to throw away money to support competitors because the companies have no valuable assets to sell when they go under. Mark M.

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