Seagate Technology Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Seagate Technology

STX 250.38

-5.7%

Nov 4 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: Sam	10/16/2010 11:39:58 AM
	Read Replies (1) of 7841

Barrons "LBO candidates"-- online.barrons.com excerpt: It's easy to see why private equity is attracted to Seagate, the top maker of disk drives. Seagate and rival Western Digital have some of the lowest valuations in the tech sector even after moving up last week on the Seagate buyout report. At around 15, Seagate is valued at just 7.5 times projected profits in its current fiscal year, ending in June, and for just five times trailing profit. The rumored buyout price of $16 a share seems to dramatically undervalue Seagate; such a deal would amount to little more than three times trailing pretax cash flow. Largest LBOs As Barrons.com reported Friday, any attempt to take Seagate private at anything less than 20 a share could generate significant shareholder opposition. The stock may be worth 25 to a buyer. One potential purchaser: Samsung (005930.Korea) which would go from being an also-ran in disk drives to No. 1 player in the industry. Western Digital, at 31, fetches nine times forward profits and sits on net cash of $10 a share, or a third of its market value.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next