OT >> What advantage does STX have?
The advantage (which is recognized by the higher share price), is the very comprehensive technology that Seagate employs and dominates.
Seagate's product range is from the smallest form factor, to the largest capacity. And includes the highest performing drives for enterprise applications (fiber-optic interface).
In addition, they "underserved" their markets in q4. (drive shortages were confirmed by EMC and IBM). So seagate will spend q1 trying to rebuild inventories, which is why it is guiding higher in q1, when usually this q is down 30%, seasonally).
And like I said before, the 100m share secondary is well publicized, so it is already in the price.
Let's look at another way, Seagate out-earned altera (by 100%), xilinx (by approx 100%), novellus, etc...., and will likely earn higher than intel this q, yet is priced much lower than each of them. So I'm hoping for catchup. |
