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

To: TechMeister who wrote (5281)	7/21/1998 12:27:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 7841

Maxtor reports higher Q2 revenue and income MILPITAS, California, July 20 - Maxtor Corp, a subsidiary of Hyundai Electronics America, said on Monday its second quarter net income was $5.4 million, compared to a net loss of $46.6 million during the same period a year ago. Maxtor said in a statement revenues totalled $531.3 million compared to $283.1 million previously. The second quarter earnings for 1998 included a $4.7 million credit for stock compensation expenses, the company said. ''This was a very difficult quarter for the hard disk drive industry,'' said Maxtor president and chief executive officer, Mike Cannon. Maxtor said its drive shipments totalled 3.74 million units during the quarter, an increase of seven percent over last quarter. Additionally, Maxtor said it improved gross margins to 11.8 percent. Hyundai Electronics America is a subsidiary of Korea's Hyundai Electronics (00660.KS). biz.yahoo.com

To: TechMeister who wrote (5281)	7/21/1998 9:48:00 AM
From: csm	Read Replies (1) \| Respond to of 7841

I'm new here too and trying to find out the same thing. Looking at your profile, do you work for Quantum? Illiterate investor?? Anyways, someone posted here that SSI has been doing about $80M/Q in sales. This is about 2X 2 years ago. The same person said SSI has been valued between 1.5-2B. So, that is a price to sales ratio of about 5-6. Not cheap, but not outlandish either, so let's say that is reasonable, hence SSI would have a value of $6-8 per share. The real Q is what happens to SEG? Here are a few choices: a) nothing, they won't really miss $320M of revenues and the associated profits, so price stays where it is (~$25 now) b) SEG prices fall in line with QNTM, which sells for about 2/3 of SEG based on sales over the last year or the last quarter, so SEG falls by $8. c) something in between. As usual, when in doubt, choose c. My guess, to get some reaction here, is that SSI would be worth the equivalent of $7/share and SEG might drop a buck or two but that's it. My projection would be that if the did it today the shareholder would benefit by about $5. OK thread, please enlighten me. It's in all our interests to try to quantify this. Here's my question. Since everyone knows SEG is going to spin off SSI, why isn't it already in the price, or is it (b) above? Stuart.

To: TechMeister who wrote (5281)	7/23/1998 10:42:00 AM
From: Stitch	Respond to of 7841

Techmeister, Apologies for the delayed response. I am on the road and haven't been able to check in as often. I think Robt Douglas' comments about SSI valuation are fair but the market will determine the final outcome. In my opinion Seagate will float closer to 40% of the operation. But if the do it they have a timing problem. Do they wait and try to outdistance the last quarter (I am a bit dubious of their comments on the results) or do they rush to take advantage of market conditions that may not last (according to AG anyway.) Best, Stitch