Here is a quote about Seagate from the NYTIMES:
The interview was Richard Weiss, manager of Strong Opportunities Fund. Here are his comments on SEG, taken from Sunday's NYTimes:
"Another favorite is Seagate Technology, the disk drive maker based in Scotts Valley, Calif. "Right now, business is terrible because there's a lot of pricing pressure," Weiss said.
"But we're at the bottom of the cycle and things should get better from now on."
Seagate owns a 30 percent stake in Veritas Software, which produces software used in storage area networks, as well as positions in several other software companies. In total, the stakes are worth $49 a share, Weiss figures.
So Seagate, which closed on Friday at $38.8125, sells for less than the value of its holdings, "and you get the largest disk drive manufacturer in the world for free," he said.
He expects the company to become profitable next year.
He started buying shares in July, at an average cost of $25.50 each. The shares now trade for 60 percent of his estimate of private market value -- $65 a share." |
