Seagate ( STX) Background: Seagate Technology designs, manufactures, markets and sells hard-disk drives for enterprise storage, client compute and client non-compute market applications worldwide. 52-Week Range: $15.00 to $35.71 Book Value: $9.02 Price To Book: 2.9 Earnings Payout Percentage: 13% Seagate is becoming one of the great value buys I look for. High-yield dividend of about 5%, and only 15% of profits are paid out. The company announced a dividend hike today, not a surprise considering the strong financial shape it is in. The market is not allocating much weight to Seagate's strong income statement. Fears of a slowing PC market are weighing on shares. I believe the discount now offers an opportunity. Seagate is making the right moves and is a leader in storage. The company has created the best of both worlds in storage. A combination of SSD with platters to create a product that is both fast and low in cost. If storage continues to move to the cloud, Seagate is well-positioned to exploit the sales. If PC sales (or other products that use personal storage) pick up, Seagate wins. If not, Seagate continues with a focus on the enterprise. Either way, I expect Seagate shares to reward investors. The shares have moved higher by 55% over the last 52 weeks. Analysts are calling for a price target of $28.76. I agree with a one year price target of $29 per share and over $30 two years out. Short interest over 10% should give pause to investors looking at this company. The current percentage of the float short is 10.6%. There is a very good reason why I consider short sellers the "smart money" and RadioShack along with Seagate illustrate it perfectly. Unlike RadioShack, I consider Seagate a very good long-term investment. I really like the options in Seagate. I am examining the January $24 strike put as the entry method. I want to collect at least $1.20 within the next week (Seagate stock likely needs to fall below $25 for that to happen). If I sell the put option, and Seagate shares continue to fall, my cost basis is $22.80. I am very comfortable owning Seagate for less than $23 a share. For non-option traders, Look for an entry near $24.75 as a relatively strong risk relative to reward play. STX Payout Ratio TTM data by YCharts At the time of publication the author had a position in RadioShack.Follow @RobertWeinsteinThis article was written by an independent contributor, separate from TheStreet's regular news coverage.