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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: willcousa who wrote (11061)	8/19/2003 7:01:36 PM
From: Sarmad Y. Hermiz	Respond to of 95743

>> In your model don't forget the role of investment bankers who take large front fees on many market activities. Yes, but remember they perform amazing feats of financial magic for their 8%. For example, take Seagate. The company was LBO'ed for $2B (actually $1.2B, because it had $800 m cash, which stayed with it). Then it was re-IPO'ed a few months ago - at $6B market cap. Most of the proceeds going to the private shareholders. Even more amazingly, a month ago they again sold $1.0 B of shares ($all to the LBO holders, $zero to the company). And every share sold like hotcakes. And the most amazing thing is the public shareholders do not even have control of the company (only 30% of shares are public). I would really like to know how buying stock in Seagate resembles an "investment". Anyway, re the bankers. The market would not be one tenth of its size without them. Of course in my opinion, 90% of public companies shouldn't be public anyway. Since they are run solely for the benefit of their managers and employees.