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

To: Robert Douglas who wrote (1199)	11/16/1999 4:33:00 PM
From: Robert Douglas	Respond to of 1989

On October 8, 1998 two days after Veritas acquired Seagate Software the stock (VRTS)traded at $23.75 or $11.88 adjusted for the 2 for 1 split. If you had bought on that low you would have 11 times your money in 13 months. Why were we invested in Seagate? <g>

To: Robert Douglas who wrote (1199)	11/16/1999 4:35:00 PM
From: Mark Madden	Read Replies (1) \| Respond to of 1989

Thanks Robert, Here is my new theory. Perhaps if SEG was sold for $16 billion, the shareholders would be taxed the difference between the selling price ($16 billion) and the book value (approx. $3.1 billion). Of course this way the IRS would get paid for VRTS and all other investments that increased the value of SEG above the cost basis. The shareholders would then get the after tax proceeds and have to pay income tax on their gain. What a deal! Then, the purchasing company would begin with a new basis of $16 billion. Does this make sense? Regards, Mark