If I were to start this article by writing "I don't mean to brag, but...," that'd be a lie. I do plan to brag. The act of stating that you don't want to do something, and then going ahead and doing that thing strongly suggests that the first part of the sentence is just a way to make you look less personally odious. People who know me well understand on a deep level that I have no problem embracing my inner odiousness, so here goes. I've done well with my investments in Seagate Technology (NASDAQ:STX). In late November of 2018, I wrote the first of two articles on Seagate. It was bullish, hence the very imaginative title "Buy Seagate Technologies" and investors earned a return of ~21% subsequent to that, as compared to a 14% return for the S&P 500 over the same time period. I then shifted to neutral and wrote in November of 2019 that I'd be selling my shares. Subsequent to that, the shares lost 15.6% against a gain of 2% for the S&P 500.
Today, I'll endanger my record here and offer another commentary about whether it makes sense to buy back in again. I'll try to make that determination by looking at both the financial history here and the stock itself. I'll also recommend another options trade, as the last one I recommended worked out rather well in my estimation. For those who can't stand my writing, and who somehow missed the title of this article, I'll come right to the point. I think shares of Seagate represent great value at current levels. I think investors would be wise to buy.
Financial Snapshot
The financial history here is impressive in my view. Although it's been cyclical, obviously, over the past six years, profits have increased at a CAGR of
