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Technology Stocks : Seagate Technology - Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Robert Douglas who wrote (975)	7/7/1999 2:57:00 PM
From: Kevin Linder	Respond to of 1989

The analyst was the chief strategic investment officer for Phoenix-Duff&Phelps investment funds. They still can tap the value of the VRTS shares - not by selling - but by borrowing money and using the stock to secure the debenture. SEG probably is one of the few drive companies to have a balance sheet secure enough to allow them to issue debt at anywhere near a good credit rating. I remember that a year or so ago WDC issued some convertible debt - I doubt they could do so at this point. I too would love to be more optimistic but after holding this stock for a while it is very hard. Kevin Linder

To: Robert Douglas who wrote (975)	7/7/1999 10:07:00 PM
From: Duker	Respond to of 1989

... that for Seagate to use their VRTS goldmine that they would need incur taxes of approximately 40% on the sale of the shares. Cash taxes at 40%? That doesn't make intuitive sense to me given LT Capital Gains at 20% ... wouldn't this suggest a negative basis??? .... recapture in the software business ??? ... but, I could be wrong ... --Duker

To: Robert Douglas who wrote (975)	7/8/1999 5:59:00 AM
From: Duker	Read Replies (1) \| Respond to of 1989

RD, I stand corrected on the LT Capital Gains treatment for corporations. It currently stands at an incredibly painful 35%. So your 40% number ... assuming it contains some penalty ushered in by a state capital gains tax ... is probably correct. I am certainly not a Tax Guy ... but, have found this exchange to be quite interesting. Just another example of our government screwing corporations and discouraging the formation of new businesses ... Mercifully, there are always tax attorneys who can help co.'s avoid the trauma of these tariffs. --Duker