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

To: stock bull who wrote (4181)	11/20/1997 2:24:00 AM
From: uu	Read Replies (2) \| Respond to of 7841

Stock Bull: A couple of months ago (when the stock was still in the low 40's) I recall reading one of your comments that implied you knew (from your internal knowledge of the company) that SEG was in big trouble. You also said that you could not share anymore info with regard to that due to special reasons. At the time I recall I did not believe you and simply thought of your comments like so many others I read on the SI as simply none-sense! I even went ahead and in a sarcastic manner mocked your comments. First of all please accept my apology for that. And secondly I would like to know of your opinion as where do you think the bottom might be as far as SEG's stock price is concerned. I have a bunch of shares with an average price of $40 and would like to average down. However I would like to (like everyone else of course!) to pick up more shares at their absolute bottom! I am in not a rush either since I will not have access to any meaningful cash till January anyway. But nevertheless I would like to know your opinion as how low SEG's price can go. When it comes to valuations it is indeed a very difficult job to put a price on the high tech companies. It seems what really drives the price is not so much of the underlying valuations or fundamentals but rather more the perception. Segate with a price to sales ratio of around 0.6 and considering it's dominant position in the disk drive market lookes extremely cheap. However it seems the short term perception may even make the stock much cheaper! I am a strong believer of the new computing model as defined by Sun Microsystems (namely thin client/server centric architecture). And as this new model starts to take off (starting this quarter) the need for storage devices on the server side will increase dramatically. Segate, I believe and please correct me if I am wrong with this assumption, is in a leading position to take advantage of this demand on the server side. In fact that is exactly the very reason I invested in Segate in the first place instead of choosing for example QNTM, or WDC (which do not have the same exposure to the server market). Your thought are greatly appreciated. Regards, Addi Jamshidi