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Technology Stocks : Veritas (VRTS)

VRTS 165.54

+0.5%

3:59 PM EST

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To: Beltropolis Boy who wrote (224)	10/7/1998 12:14:00 PM
From: The ChrisMeister	Read Replies (1) of 742

From one of the other posts: "its [SEG's] Network and Storage Management Group, a unit that generated $175 million in sales in the past 12 months." At the original price (when the stock was $45+), this was indeed too much to be paying for this much revenue -- something like 9 times. Certainly no bargain. Of course with the haircut it's now more like 5 times revenue. Still not cheap. When one adjusts the share price simply for the share dilution factor (something like 50/(50+35) x $45) you get a number around $26 1/2 or $27. I think this was what happened yesterday. Now, if those shares are not added to the float. . .though I don't see how that's possible if SEG is talking about the realization of the cash from the deal; they can only get that by cashing out the shares. I like the gorilla idea, but it's yet to be seen whether the digestive process will work so that that can be realized. ChrisMeister

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