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

To: Mark Madden who wrote (1151)	10/15/1999 4:30:00 PM
From: Sam	Read Replies (1) \| Respond to of 1989

Well, on a day when the market was down over 2.5%, VRTS went up over 10%. I realize only too well SL's point about tax liabilities, but the fact is that Seagate's stake in Veritas is now worth nearly as much as the market value of the entire company (about $6 billion vs. about 6.5 billion). Add in ZOOX and SNDK stakes, and it's even, or perhaps the drive business gets a negative value. Well, this is not dissimilar to the situation that led QNTM to create two tracking stocks, as their DD division was getting a negative value. I'm not sure if Seagate can create an investment group, sell a portion of it to the public for cash to get it valued, spin off a portion to stockholders, and defer taxes that way, but surely there must be something they can do? It is rather remarkable. Of course, we've talked about the Petrie Store/ToyRUs case on this thread before. It isn't unprecedented. But Petrie wasn't a leader in their sector like Seagate is. They are very, very different companies. Oh well, at least it's a piggy bank that SL can go to every so often for cash. Maybe Maxtor holders would take VRTS stock for their company, and solve a lot of problems, both company specific and sector-wide! Have a great weekend everyone! Sam