Take Your Tech Recession and Stuff It

[HardOCP News]

I never get tired of reading interviews with Seagate’s CEO, William Watkins. He just seems like such a down to earth kinda guy, doesn’t he?

I'm generating over $700 million in cash, over $500 million in free cash, no inventories, double-digit growth, and yet I'm trading at less than an 8 (price to earnings) multiple. All I can think of is that there's just real fear out there. But we're in this for the long haul and I think the market always gets back to reality. It will this time, too.

 

[Kendrak]

If we hit a bad patch no inventory is a very very good thing.

 

[jacuzz1]

Man I wish the media would lay off the doom and gloom bandwagon. I am a retailer and I am taking in the arse big time . Business has slowed to next to nothing and on top of that my portfolio definately has taken a hit. Gosh darn politics..................

 

[HardOCP News]

well, that's just it... the media loves to scare people and scream DOOM / GLOOM!! You have to wonder how much damage is actually CAUSED by the constant drum beat of the naysayers.

 

[rayman2k2]

well, that's just it... the media loves to scare people and scream DOOM / GLOOM!! You have to wonder how much damage is actually CAUSED by the constant drum beat of the naysayers.

Alot really. Which is why the Fed cut the interest rate by 75 basis points.


It's amazing what speculation does for the state of the economy. And this is what I want to do as a career? Trade stocks? Where one economist can say we're heading into a recession and we do?

 

[jacuzz1]

The left wants to scare the public so that the small business man gets creamed , thus job growth slows ( I will be laying off employee soon) and everyone ends up on the public dole so the gov can tell then what to do.

 

[Master Blaster]

The left wants to scare the public so that the small business man gets creamed , thus job growth slows ( I will be laying off employee soon) and everyone ends up on the public dole so the gov can tell then what to do.

You're crazy!!! *Goes back to reading the Onion*

 

[GilmourD]

Don't even get me started on futures... I think it's the most retarded thing in the world to trade stocks based on things that HAVEN'T HAPPENED YET...

 

[xpsango]

I loved the doom and gloom. I have gotten so many good deals on stock purchases. There are alot of companies that have posted really good earnings but their stocks are falling. Buy in cheap weather the media recession and profit.

 

[[Spectre]]

It used to be the media's job to report the news not make the news. Seems that is no longer the case since media is part of the political structure in the US pushing their own agenda. Its good to see some companies speaking out like Seagate though and that news getting some play.

 

[jacuzz1]

You're crazy!!! *Goes back to reading the Onion*

ahahhah

 

[jacuzz1]

I loved the doom and gloom. I have gotten so many good deals on stock purchases. There are alot of companies that have posted really good earnings but their stocks are falling. Buy in cheap weather the media recession and profit.

I will definately be buying nvidia again if it hits 20 a share. I sold all my stock when it split a couple months ago

 

[rayman2k2]

I will definately be buying nvidia again if it hits 20 a share. I sold all my stock when it split a couple months ago

Oh hell yeah, Google, Apple and Intel are down, once it all bottoms out, get in and hold for the long run.

 

[russnuck]

He just seems like such a down to earth kinda guy, doesn’t he?

+1

As Seagate employee I will agree with that. Our IT group and some others (~20 people) got a ~2 hour session with him just to ask questions. Was really alot of fun.

 

[Synful Serenity]

A recession's major cause is sentiment and psychological factors. Most of the economic signs have been around for months...It's only when "recession" starts being quoted and printed en masse like it has the past week, that people finally listen. And react accordingly, ironically helping to cause the very recession they fear. Of course, it's too late now. You don't wait for the dam to burst to try to plug the leak, you do it while plugging it with your finger still works.

Speculators didn't learn their lessons during the dotcom days, so they turned their attention to something else to run up unsustainably. Housing equity was the only thing keeping the economy going these last years, and if it was allowed to occur at a more moderate level, it might still be true today. Instead you have a mountain of foreclosures, people not being to pay their bills, and creditors losing billions. With interest-only loans at rates that had nowhere to go but up, to people with hardly any chance of paying them back, and home prices rising many times faster than wages, it's the exact end result that a trained monkey taking a smokebreak from writing the complete works of Shakespeare could've told you years ago. Throw in expensive energy for good measure. We all stood by watching as this was happening, but the only people who had the power to do something just looked the other way. And now here we are.....The kicker? If people just keep on doing as they've been doing, instead of trying to sell off everything and stockpiling money like the senator did with Ensure in Deep Impact, there's a good chance that this would be only a minor period of less-than-optimal growth. But being freaked out, recession is inevitable.

Luckily we have people like Watkins to try to set the record straight. I only hope he's right, and enough people join him to propel reason over fear.

 

[Icheb]

It's always hilarious when people who can't spell "a lot" and "definitely" properly want to comment on complex issues like the economy and a possible recession. Gives you people really A LOT of credibility.

 

[xX_Jack_Carver_Xx]

Yeah, no such thing as recessions or global warming..... move along, nothing to see here.

Meantime, enjoy that healthy $11.8 TRILLION national debt, and $6 TRILLION trade debt, and next years $600 BILLION trade deficit with no end in sight. I'm sure its all fine and no harm will come....

ALL IS WELL!!!!

Meantime, yes, Intel with it's very depressed price would be a serious bargain with a little more of a drop.

Remember Apple back in 2001... $8/share with it having peaked in the $80's last fall!!!!

So Intel's $16ish? should be a good starting point. Alot of the tech stock prices really dont reflect any reality (in the opposite way they didn't back before the bubble) and make for good investments longterm.

people crack me up.... "job creation"... wtf planet are you on. The unemployment rate counts the number of people who are ON UNEMPOLYMENT. When the time is up and your benefits end, guess what, you aren't UNEMPLOYED anymore according to the government.... see OBVIOUSLY if you aren't collecting unemployment anymore, you must be employed, right?

So the 5 3/4% claim is off by a factor of between 2 and 3. Not 7 MILLION people out of work, it is 14-21 MILLION in reality. Talk about heads in the sand.

 

[Manny Calavera]

It used to be the media's job to report the news not make the news. Seems that is no longer the case since media is part of the political structure in the US pushing their own agenda. Its good to see some companies speaking out like Seagate though and that news getting some play.

Great post ! And I agree.