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

To: Stitch who wrote (805)	4/13/1999 6:05:00 PM
From: Yogi - Paul	Respond to of 1989

Stitch, <<I may be a glutton for punishment but I think we have buying opportunities..... >> Bunch of masochists, aren't we. I'm going to concentrate my limited time elsewhere. Probably a good buy indicator. All the weak hands have folded, etc, yada yada.. Paul

To: Stitch who wrote (805)	4/13/1999 10:29:00 PM
From: William Epstein	Read Replies (1) \| Respond to of 1989

Stitch; I know you were concerned by the restructuring charge of 60 million. A very big part of that charge is a change in the way SEG does it's accounting. They have decided to delay recognition of revenue until the goods are actually sold by their distributors. The sales are still there but not recognized until the goods are shipped from the distribution warehouses. This reflects completed sales. So, if orders are cancelled they are not charged against next quarter's profits. It is a more realistic inventory accounting system. The catch is they/we have to bite the bullet for one quarter. It should be made up through the rest of the year. They probably have an agreement too, with their distributors that they retain title to the goods until shipped from the distributors' warehouses. PHOTOMAN

To: Stitch who wrote (805)	4/14/1999 8:39:00 AM
From: Robert Douglas	Read Replies (1) \| Respond to of 1989

Bear Stearns raises rating on Seagate: <<We upgrade SEG from Neutral to Attractive due to compelling valuation. We believe SEG is under-appreciated due to its association with the highly competitive disk drive business. Based on aggregating the values of its parts (SEG's disk drive business, 35% stake in VERITAS, remaining software business and net cash), we arrive at a value of $30 to $45. Moreover, we believe SEG is focused on unlocking value and will take steps to address its valuation. We feel investors may have overlooked SEG's progress in improving the fundamentals in its core high-end disk drive business as well as its leadership technology in the high-end. These improvements led to better than expected earnings for Q3 of $.49, above our $.47 estimate and $.46 consensus. Net income, revenues and expenses came in line. We attribute the slight upside to lower than expected share count from an aggressive stock buyback. Desktop drive revenues were a bit light of our expectation but were made up with strong revenues in the high-end drive business. 6/1999E 41.55 6/2000 E $2.10 >> -Robert