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Technology Stocks : Seagate Technology - Fundamentals
STX 285.91+3.8%2:23 PM EST

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To: Lynn who wrote (1363)3/3/2000 12:08:00 PM
From: Yogi - Paul  Read Replies (1) of 1989
 
Hi Lynn,
I too am delighted to see such a steady rise in Seagate. Its been very nice.
... but, you cannot take a potential seg/vrts combo out of context with stock market valuations.
Veritas is selling at 89 times price/sales, that is 30 times the S&P. The market values it that high for one reason-- potential growth in a potentially explosive target market.
Seagate is selling for 1.6 price/sales or less than 1/2 the S&P.
Mature (although exciting) company with historical negative growth. I'm in it because I think that's changing.
The market would view any slow growth acquisition very, very negatively.

Paul
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