The Motley Fool Discussion Boards

Previous Page

Real-Money Stock Picks / Messed-Up Expectations Portfolio

URL:  https://boards.fool.com/thanks-anurag-from-my-reading-hdd-are-still-the-28998072.aspx

Subject:  Re: Seagate Date:  1/3/2011  10:37 AM
Author:  TMFGebinr Number:  126 of 1287

Thanks, Anurag.

From my reading, HDD are still the primary (and cheapest) storage media. SSD are still a relatively small share of the storage market and are much more expensive per gigabyte, though that will almost certainly come down. Seagate is supposed to be in SSD, as well, but is playing catch up a bit on that.

It recently turned down a LBO offer and instead is leveraging its balance sheet a bit (further swinging to a net debt position) to help fund a rather large share repurchase ($2 billion, out of a $7 billion market cap). Has the EBIT to handle the interest and with $1 billion in FCF, should be able to pay down the debt relatively easily.

Cheers,
Jim
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us