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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (4640)	10/7/1998 10:43:00 AM
From: Hungry Investor	Read Replies (1) \| Respond to of 9256

GM, I generally do not comment on shareholder lawsuits, as I am generally not in favor of them (unless of course mgmt. has truly manipulated the stock for their own ends). These suits are a dime a dozen and most of them are BS. The market is risky, and if you lose money, tough crap, everyone does from time to time. Based on the dilution for the purchase of Seagate software (and assuming that the software unit is not accretive, just flat, which is an unknown because this purchase was just part of the software division) the stock should have fallen from $45 to $29.25 (35% drop). If the partial division is accretive (and I don't see why it wouldn't be, but I've been wrong before) then yesterday's close was too low and there should be a bounce today. Also, in this overall market uncertainty, who knows where the stock will land? As far as a suit is concerned a PE of around 65, even for a software company, is pretty hard to support and stomach. Scott.