Seagate: I Told You So

| About: Seagate Technology (STX)

No matter how you look at Seagate (NASDAQ:STX) at this point, the company is in a strong position. I hate (read: love) to say this, but I told you so. There is no excuse at this point for not investing in Seagate, in my mind.

An investment in Seagate covers all your investing needs.

Aside from hyper-volatile penny stocks that can deliver enormous growth (and enormous losses), Seagate can achieve any goal you want in investing.

Want some dividends? Seagate offers a 4% dividend per year, comparable to many dividend giants that come to mind.

Want a stock that's going to grow in price in a stable fashion? Seagate's share price has significant growth potential with its obscenely sexy P/E of 5. The threats to Seagate's profits have been addressed by the company, and as analysts are finally beginning to notice, some threats aren't all that applicable anymore.

I cannot name another investment that contributes to me sleeping soundly at night like Seagate does.

Why Seagate over Western Digital?

The dividend is one reason. Western Digital's (NYSE:WDC) dividend is a mediocre 2%, barely enough to beat inflation even in this low-inflation environment. Since Seagate offers double that, I think any rational investor will like Seagate twice as much as WDC. I certainly do, anyhow.

Then there's P/E ratio. WDC is a healthy 7 or so, which is nothing to balk at. However, I like Seagate's 5 much better.

Then, of course, there's my personal opinion of its products. I hate working with WDC drives. In my experience, WDC's drives are finicky, irritating, and not very durable; I have never had any issues with my Seagate drives. Startup cloud companies agree. You'll notice one of the images very close to the bottom shows a Seagate drive, or you can see a Seagate drive within the construction montage in the video.

To the potential investor saying: "I've missed the boat, though!"

So you missed out on the nice gain last week, and are worried about a pullback. I don't blame you, in this crazy market. After all, this is a market where companies such as Amazon (NASDAQ:AMZN) get ridiculous valuations despite obvious signs that their profits cannot increase to the levels investors expect them to.

However, I don't feel that those of you who are not long Seagate right now have missed out on too much, at least compared with what growth is to come. Seagate's price has a lot of room to grow as demonstrated by its P/E. Demand for data storage will not decrease anytime soon, and as I mentioned in my previous article (linked at the beginning of the article) about Seagate, tunnel-vision analysis of declining PC HDD sales will not result in an accurate view of Seagate's earning potential.

Will there be a pullback? I won't claim to know, but I do feel the market is overvalued in general. While waiting may present a good entry point, I wouldn't wait more than a couple of months. If there is a correction, and if Seagate follows the market in this hypothetical pullback, Seagate will be a stock that I will happily sink all of my money into.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in STX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Sold my stake in STX once again on Thursday, thanks to the great gain after earnings. Waiting for a pullback that may never come...