Seagate Technology - Fundamentals Message Board

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Technology Stocks : Seagate Technology - Fundamentals

STX 257.99

-1.7%

Nov 14 9:30 AM EST

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To: Stitch who wrote (805)	4/14/1999 8:39:00 AM
From: Robert Douglas	Read Replies (1) of 1989

Bear Stearns raises rating on Seagate: <<We upgrade SEG from Neutral to Attractive due to compelling valuation. We believe SEG is under-appreciated due to its association with the highly competitive disk drive business. Based on aggregating the values of its parts (SEG's disk drive business, 35% stake in VERITAS, remaining software business and net cash), we arrive at a value of $30 to $45. Moreover, we believe SEG is focused on unlocking value and will take steps to address its valuation. We feel investors may have overlooked SEG's progress in improving the fundamentals in its core high-end disk drive business as well as its leadership technology in the high-end. These improvements led to better than expected earnings for Q3 of $.49, above our $.47 estimate and $.46 consensus. Net income, revenues and expenses came in line. We attribute the slight upside to lower than expected share count from an aggressive stock buyback. Desktop drive revenues were a bit light of our expectation but were made up with strong revenues in the high-end drive business. 6/1999E 41.55 6/2000 E $2.10 >> -Robert

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