Seagate Technology (STX) was one of just a few existing names that David Einhorn's firm added onto last quarter: Greenlight added 89,000 shares to its Seagate holdings, ratcheting the firm to more than 7% of the firm's stock portfolio. Like Expedia, Seagate has had quite a year in 2012 -- shares have more than doubled since the first trading day of the year.
Seagate designs, manufactures and sells computer hard drives. That's a business that's proven extremely lucrative of late, as demand for storage grows dramatically. Industry trends are pushing towards technologies like cloud computing, a convenience-focused offering that typically means that data is stored in multiple locations -- both locally on a computer and then remotely on a server. That's fueled growth demand for storage at datacenters and on consumers' computers, two markets that Seagate provides hard drives for.The firm has a solid balance sheet with more than $2 billion in cash that largely offsets STX's $2.9 billion debt position. That, coupled with stellar free cash flow generation, has helped to pay out a hefty dividend, currently weighing in at about 4%. I also featured Seagate last week in " 7 Hot Stocks to Trade (or Not)."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV