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

To: Kevin Linder who wrote (6096)	10/27/1998 4:45:00 PM
From: William Epstein	Read Replies (1) \| Respond to of 7841

Kevin Linder; I understand your logic. However, I will say it for the second time, I merely pointed out, in response to a query, that Seagate has the option to sell. I am not predicting what they will do or why they might do it. I stress, that I pointed it out meaning, that they have the option to turn the stock into cash at some point. That is, if they want to. I agree with your analysis but please reread my original post. With regard to specialist activity. The specialist is not my specialist! I wish he were. I would be a very rich man, indeed. If you know this stock's history during the last 2 yrs. you also know that this stock would drop like a stone while the market was going up. Where was the Dow 2yrs. ago? This specialist doesn't need a declining market as an excuse to do whatever he wants to do with the stock. There isn't much doubt that in my mind that he controls price and indirectly, volume. We have seen the evidence within the last 2 mos. and I have pointed it out day by day and now, almost to the minute. The fact is simply, that he is shorting. He isn't doing it in anticipation of a rising price level (although, there may be a temporary rise I call, the shorting spike). If you wish to ignore that fact be my guest. There may be a market decline soon and maybe not but it has nothing to do with what is going on with Seagate's stock here and now. 80% of all short interest is executed by specialists. It is the primary tool they use to control price levels. PHOTOMAN/William Epstein

To: Kevin Linder who wrote (6096)	10/28/1998 1:26:00 AM
From: Stitch	Respond to of 7841

Kevin, While it looks like some seasonal PC buying combined with cutbacks among the DD suppliers has worked together to reduce inventorys I am not convinced that we have a long term correction underway. At the end of the analysis is still the fact that the DD sector is still overcapacity. I still subscribe to the notion that it is going to take moves on both fronts (deamnd and capacity) to resolve the sad state DD makers find themselves in. In the meantime a review of the recent pre-comdex product announcements suggest it is business as usual. I believe that Seagate's deal with Veritas is nothing short of brilliant. Why is it accretive to Veritas? Because it puts Veritas in the key slot for NT business. They will be the encumbent supplier as NT takes off. In the meantime Vertias' traditional UNIX business looks healthy. Both companies have superior channels for the sale of software products. These will weigh heavily on sales in the future. I think you are right to ask what will SEG do with their increased balance sheet leverage and still enviable chunk of cash. But overall I like their position better now then before. Best, Stitch