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

To: Kevin Linder who wrote (5312)	7/25/1998 3:20:00 PM
From: Frodo Baxter	Read Replies (1) \| Respond to of 7841

Great post. As investors, we shouldn't get too sentimental about Al's ouster. Et tu, Brute? One quibble: >Shugart did not cause this last disk drive war. He was part of the management that created some of the inefficiencies that have hampered Seagate. Oh, I don't know about that. I've always contended that SEG's vertical inefficiencies combined with WDC's flawed TFI strategy led to the current mess. Both flaunted Moore's law (okay, too harsh... they tried to hold it back) and paid the price by giving succor to second tier competitors, ultimately destroying the oligopoly model that had almost taken hold. Ah well, that's ancient history by now and cartels generally don't succeed anyway. If I was into business drama rather than my own investment returns, I would make the modest proposal that QNTM offer Al its chairmanship (he has to make sure the board buys back all his stock as part of his severance). Then make a play for MXTR either before or after its busted IPO. It would be a great vantage point from which to observe the destruction of the company he created. You know what they say, revenge is a dish best served cold.

To: Kevin Linder who wrote (5312)	7/25/1998 6:59:00 PM
From: Stitch	Respond to of 7841

Kevin; Yours is a thoughtful and intuitive post. <<I have never met Al Shugart, but I do know his type from numerous other individuals I have met.>> I have met him. Many times. He is an acquaintance...not a close personal friend, but we have had several occasions to talk, even privately. You have captured a facet of the man in your distant observance IMO. Al does know how to enjoy himself. He has a rare grasp of life and is also a charming man in every respect IMO. He is causal, seemingly off hand, and quite happy to share a joke. I also think that underneath his wheels keep churning all the time. I believe he has an ego larger then life based on a huge amount of self confidence. He can also be outspoken and determined. But then, these are quite common qualities of leadership IMO. I also think you are right that these moves are often necessary. Time and time again over the years I have seen this pattern. Too often it sadly comes at the expense of shareholders and employees who to blindly followed the original vision. True visionaries have that incredibly powerful quality of tenacity. I think it is very likely that Al forced the hand of the board and suspect this has been playing out for awhile. I like Luckzo and and I like Watkins. I have enormous respect for Perleman. But I think, even in the face of a stubborn Al Shugart, this could have been dealt with in a better fashion. Maybe its my age. <G> Best, Stitch