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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: LK2 who wrote (8194)	3/30/2000 11:40:00 AM
From: Toko	Read Replies (1) \| Respond to of 9256

If the private group including current management buys Seagate's operations for $2B. I divide that by 214.8M shares outstanding as of 3/31/99 and get $9.31 per share. Divide that by $.52 EPS consensus from Yahoo for this FY (ending 6/00) and get 18x P/E ratio; if you use $1.21 for next FY you get 7.7 P/E ratio. Either way, it looks pretty cheap to me for Seagate's disk drive empire. So, Luczo restructures, reinvests/acquires in growth products with good margins, takes this thing public again, and I bet he comes out smelling like a rose. That's in addition to the value he gets up front in VRTS shares. With all of that undervaluation pent up in SEG, looks like it wasn't so tough to make all the stakeholders come out happy? -TOKO