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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?


To: Sam who wrote (7123)9/23/1999 3:45:00 PM
From: nonzeroa  Respond to of 9256
 
All-HDD strikes me as extraordinarily cheap. I'm using a $293MM enterprise valuation based on a $562MM market cap, $113MM of debt, and $382MM of cash. This looks like 0.1x sales based on last quarter's $752MM of revenues. This seems cheap on an absolute basis and compared to other industry players. I realize current cash flow is atrocious (-$59MM), but HDD has lots of cash and the stock seems like a very cheap option on the future. What am I missing?