STX - strong gains in a weak market

Despite equity indexes continuing to slip moderately lower, Seagate (STX) saw very strong gains, closing +5% @ $43.88. Next target is the July high of $47.38, which seems very viable within the next month or two. Relative to the main market, STX remains very undervalued.


STX, daily

STX, monthly

Summary

Seagate has been one of the ultimate gainers since the collapse wave of 2008/09. From a low of $2.66 in Jan'2009, the stock recently hit a new historic high in the $47s, a gain of almost 2000% in just four years.

Despite the massive increase in usage of solid state drives (lead by Sandisk - SNDK), Seagate remains reasonably profitable, and has a very acceptable balance sheet.

see key stats @ yahoo! finance

Relative to the main market, with a forward PE in the single digits, STX is arguably undervalued by 75-100%.

STX is definitely one to watch, especially if it breaks new highs this autumn.