Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Kevin Linder who wrote (1172)	11/2/1999 12:58:00 PM
From: Robert Douglas	Read Replies (1) \| Respond to of 1989

Drive business value I have updated my spreadsheet on what I feel the market is valuing SEG's disk drive business. We've been through this ad nauseam but I still think it has some merit. The new assumptions I am using are these: Value or SEG's holdings in VRTS, ZOOX, SNDK are net of capital gains taxes of 35%. I know the corporate capital gains rate was going to be reduced to 28% but I can't remember if that version of the bill ever passed. Does anyone know? The cost basis I am using for VRTS is $25 a share (computed from last quarter's sale) and for SNDK and ZOOX I am using zero. I am using cash and short term investments net of debt for a cash value and a value of IMG of $500 million. So summing the net investments, cash and IMG and subtracting them from SEG's current market value, I get a disk drive business valued at $1.66 a share. As always please recognize the fallacy of this type of valuation. -Rob