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Technology Stocks : Seagate Technology
STX 346.53+0.7%Jan 22 4:00 PM EST
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To: grogger who wrote (6900)2/21/1999 1:27:00 PM
From: William Epstein  Read Replies (1) of 7841
 
Rob Grogg;

Yes, they are on the high road again. That $12 book will be enhanced by $4 by the end of the second or third quarter with the completion of the Veritas sale in addition to monetized earnings from this fiscal year and the repurchase of their stock. I think by Jan 2000 we should see a book value of $17-18. A reduction of debt which will also increase book value too. Its clear that management wants to enhance shareholder value. Something Al Shugart didn't seem to care much about.

At 32 the stock is less than twice next year's book value for certain with a market cap slightly more than 1 times this year's cash flow. That's dirt cheap in this market especially, for a high tech stock. If SEG can hang on to earnings momentum and have 4 good quarters and make their numbers we should see a much higher valuation next year. When the stock reached its high in Feb. 97 it was 5 times book. 5 times $17 is $85. Does $72 sound so crazy after all?

Very fundamentalist stuff for a labeled TA. Fundamentalists take note! Am I crazy for making your case? I have noticed or not noticed any fundamentalist on this thread or the other thread make this point. Are they really paying attention? I wonder? Of course, they never admit to being inattentive, incorrect or simply, ignorant.
PHOTOMAN




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