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

To: Robert Douglas who wrote (1158)	10/29/1999 7:26:00 PM
From: PerryA	Respond to of 1989

My analysis of the market value is the correct one. Thanks. I like yours better anyway! Regards - PerryA

To: Robert Douglas who wrote (1158)	10/30/1999 5:11:00 PM
From: Kevin Linder	Read Replies (2) \| Respond to of 1989

Rob/Perry. The historical cost of shares in a balance sheet reflect the costs invested in the subsidiary and in the case of VRTS/SEG a reverse merger between NSMG and VRTS allowed SEG to "mark" up the share prices to a higher level in a "tax free exchange." The sale of VRTS shares is a taxable event and taxes are paid based on the gain from the original investment not the balance sheet figure. The balance sheet is a very inaccurate way of evaluating many investments. For buildings, plants property and equipment it is a fair method. For appreciating property - especially rapidly appreciating property it can lead to misvaluations and danger to the companies involved. Take the scenario that VRTs keeps appreciating and reaches a share price of $120 a share. The SEG share price bounces between the current levels of $25-30 per share. Many corporations might be tempted to make a hostile takeover bid of SEG just for the VRTS shares. Remember T. Boone Pickens; Carl Icahn; Ron Perlman; The Bas Brothers; Drexel Burnham Lambert? A scenario like that is exactly the kind that they took advantage of and there is becoming a very real danger to SEG/VRTS as the two stocks continue to perform so differently. Kevin Linder