Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Gottfried who wrote (88)	11/10/1998 2:31:00 PM
From: Kevin Linder	Read Replies (1) \| Respond to of 1989

All; While having lunch today I noticed a large Gateway ad for the Your Ware financing system. SEG has somewhere over $1.8 Billion in cash and cash equivalents. My belief is that there is an excess amount of cash for operations of somewhere around $250-500 million. My suggestion is that SEG might want to consider starting/partnering a equipment financing operation for VARS and purchases of SEG hardware. If SEG would buy a bank or partner with a commercial bank they could take advantage of the leverage of the Federal Reserve Discount Rate or commercial paper rates. At the current 5% rate the is would equal a factor of 20 or a possible amount financed/leased of $10 Billion or so. The interest rate earned would be more than the rate on investing that money in government bonds and t-bills. This action could not be matched by their competitors MXTR and WDC. I am not sure about Fujitsu. QNTM and IBM could match this type of program, however, I don't think the VAR's would be that comfortable using a IBM finance program. Just food for thought. Kevin Linder