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

To: csm who wrote (5285)	7/21/1998 10:12:00 AM
From: Robert Douglas	Read Replies (1) \| Respond to of 7841

Since everyone knows SEG is going to spin off SSI, why isn't it already in the price, or is it? The market is not stupid. And so of course it is in the market already. What everyone is hoping is that the market is underestimating its' own foolishness. <g> I myself, believe Seagate will not "spin-off" SSI, but will offer a fraction, perhaps 20% to the trading public. This will still give them control and an 80% ownership. This means that if the market starts putting stratospheric valuations on SSI, then Seagate via its' controlling ownership will reflect this valuation. If the market is currently projecting that SSI will carry a $1.5 billion valuation after the IPO, then anything above this should be reflected in SEG's stock price. Or more precisely, 80% of this difference.