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

To: Sam who wrote (4046)	11/8/1997 3:32:00 PM
From: Frodo Baxter	Respond to of 7841

>The "market" is assuming that Seagate's recent (and project for the next quarter or two) earnings are artificially low. That is, their earnings power given their asset base is far in excess of what is coming down now. Exactly. However, the value of that asset base comes into question. Is it cash or is it idling low-tech plants in SE Asia that will require considerable retooling? A proper scrutiny of the balance sheets is vital here. Because SEG's 10Q isn't out yet, it's very difficult to even hazard a guess. I do know, though, that SEG management must be real happy they managed to push through $700 mln in debt before this current crisis.