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

To: T Bowl who wrote (4503)	1/11/1998 9:45:00 PM
From: stock bull	Read Replies (1) \| Respond to of 7841

My last posting was pertaining to existing investments in SEG, not committing new money. The DD sector is still very risky. Asia has not settled down as of this time. My comments were based on the restructuring plans that SEG has announced and the press release that said the restructuring costs will exceed their original estimates. So, we can expect some big changes within the company. Rumor has it that the sale of high end drives are now starting to pickup...just a rumor that I heard. The price range of $30 to 35 per share with a p/e ratio of 15 would give an earnings range of 2.00 to 2.33 per share. I would certainly believe that the resturcturing efforts will reduce overhead and manufacturing costs. Of course, this should improve profitability without an increase in sales volume. So, given that sales volume pickups within the next 12 months, we should see SEG's profits growing again. Also, I am using the historical p/e value of 15, not some inflated number. Just my thoughts. Stock Bull

To: T Bowl who wrote (4503)	1/13/1998 8:48:00 PM
From: patrick k chase	Respond to of 7841

Todd- your negativity is overly pessimistic, I think. I'm not proud of it, but I bought in at 50, when every single brilliant analyst covering the stock was hot on it. Now that every single analyst is cool on it, and the stock has lost so much value, I would say now is a good time to accumulate, when things look there worst. Remember, Seagate is the number one DD maker, and will outlast the others. It has next to no debt, a strong cash flow, the technological lead. yes, it will take 2-3 years to come back to its high, but it will come back. Also, remember, it is branching off into software, and its 35% ownership in Dragon technology I think is going to be a smashing success.