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MikeStrong

MikeStrong
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  • Seagate (STX -3.6%) +2.5% AH after the company discloses David Einhorn has increased his stake to 23M shares, or about 5.4% of the company. According to his firm's latest 13-F, Einhorn's stake stood at 14.5M shares at the end of Q1. Seagate's low valuation (it trades at just 2.4x estimated FY13 EPS) likely has something to do with Einhorn's interest.  [View news story]
    High tech business background, was English Chartered Accountant, currently enrolled agent. STX currently yields 4.3%, earnings cover dividend 7 times, Storage space far from saturated if it ever will be. Seems a remarkable buy at current levels, Currently long and plan to continue to add. Good to see there are still sellers around like 'untrusting investor'!
    Jun 11 07:30 PM | 2 Likes Like |Link to Comment
  • Seagate (STX -6.4%) and Western Digital (WDC -3.9%) have had a very rough week, as concerns about weakening PC demand and the end of a favorable supply/pricing climate for hard drives (the result of Thai manufacturing disruptions) take their toll. Also, yesterday, Barclays aired concerns about the impact of solid-state drives (boosted by upcoming MacBook releases) and tablet cannibalization on hard drive demand.  [View news story]
    In England was chartered accountant, degree in law, enrolled agent. Assuming the earnings expectations issued by STX's board are still valid or at least will only be 75% of that, I can still buy STX as a yield stock with growth potential, after all they lead in their segment of the storage space. The tsunami may have boosted their margins and a world wide slump may be about to happen but I doubt it. More likely, is money printing and inflation. The great thing about the stock market (now a self styled casino) is that it moves from excessive exuberance to deepest pessimism, as young analysts who have never run anything write their reports. STX, WDC and INTC have to be excellent buys at these levels.
    Jun 1 02:24 PM | 1 Like Like |Link to Comment
  • Seagate (STX -2.3%) and Western Digital (WDC -2.1%) sell off following a downgrade to Equal Weight from Barclays' Ben Reitzes, who sees soft PC demand hurting the companies' 2H results. Reitzes also claims notebook hard drive prices, boosted by capacity shortages, are falling faster than expected, and says his checks indicate hard drive production cuts and PC inventory tightening. Moreover, he expects Apple's rumored plans to sell a cheaper MacBook Air to hurt hard drive demand.  [View news story]
    Maybe the Tsunami boosted prices for STX, but I wonder what Ben Reitzes would estimate the EPS for this and next year. At what point would Ben Reitzes consider that the current price has discounted his expectations thereby threatening the dividend yield? Also, how are hard drive prices boosted by capacity shortages???? IMHO opinion, when analysts like Ben Reitzes drive prices for WDC and especially STX (<$20.00), STX at least would make a great buy just for yield.
    May 29 02:23 PM | Likes Like |Link to Comment
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