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: bsmith6757 who wrote (1417)	3/13/2000 10:36:00 PM
From: Lynn	Read Replies (1) \| Respond to of 1989

Here's another article on SEG's price movement Friday and today in light of it's VRTS holdings. I'm not sure whether everyone can access the URL so here is the article on the, "Rolls-Royce" we hold: March 13, 2000 Seagate Tech Up Again; Value of Veritas Stake Cited By SCOTT EDEN NEW YORK -- Seagate Technology Inc. (SEG) shares continued to rise Monday as investors acknowledged the extraordinary value of the company's stake in Veritas Software Corp. (VRTS), which has enjoyed a phenomenal rise in its stock price. Seagate's 128 million Veritas shares, or about one-third of the company, are worth about $21.5 billion. All of Seagate, by comparison, is worth only $15.38 billion at the company's current stock price Monday of 71 1/4, up 5 3/16, or 8%. Volume was 6.3 million shares, compared with average daily turnover of 2.5 million. Earlier Monday, the shares set a 52-week high of 72 11/16, surpassing the previous high of 66 set Friday. Seagate's NYSE-listed stock rose 12% Friday, and has gained 53% over the last month as improving trends in the disk drive industry - most notably higher drive prices - have driven the entire sector higher. Seagate is considered the disk drive sector's "Rolls-Royce," one trader said. Shares of Veritas, a database software maker, were trading at 168 1/8, down 5/16, or 0.5%. Volume, which averages 7.3 million shares daily, was at 4.1 million. The stock has risen more than nine-fold since March of last year. In the current edition of Barron's and in Monday's San Jose Mercury News, articles noted the massive value of Seagate's Veritas holdings and outlined what the company's possible moves might be to harness some of that value. "Speculation on what we're going to do with our Veritas holdings have been going on for months," said Phil Montera, a spokesman for Seagate. Reports have also said that Veritas might shortly be added to the S&P 500. That would stand to benefit Seagate, Barron's said, because the company could then unload some of its Veritas stake to institutional index funds. Meanwhile Monday, in a distinctly Wall Street take on the Biblical prodigal son story, speculation swept through Internet chat rooms that Veritas might make a bid for Seagate, selling off the disk-drive operation and keeping everything else - including its own stock. In 1998, Veritas bought the software subsidiary of Seagate, issuing shares of its stock to Seagate. Analysts and traders dismissed the chat-room rumors as a highly unlikely possibility. A Veritas spokeswoman and Seagate's Montera both declined to comment on the rumors. -By Scott Eden; Dow Jones Newswires; 201-938-5253 interactive.wsj.com@6.cgi?an700018/text/autowire/data/BT-CO-20000313-005261.djml/&NVP=&template=atlas-srch-searchrecent-nf.tmpl&form=atlas-srch-searchrecent-nf.html&from-and=AND&to-and=AND&sort=Article-Doc-Date+desc&qand=&bool_query=seg&dbname=%26name1%3Ddbname%26name2%3Ddbname%26name3%3Ddbname%26period%3D%3A720&location=article&HI= Lynn