Since there are more and more people mentioning possible bankruptcy, do you really think it could actually happen soon?
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who’s left to merge with?
Seagate will survive,one way or another by means of a merger or a dramatic scale down company operating on borrowed time..
Debt is 50% of Seagate's total market cap and 3-4 times annual net operating income in the good years! It has -300% payout ratio indicating ability to pay the dividend with existing income!
So, yes.
Seagate is doing DEI and ESG score "programs" in order to get a better interest rate on debt. That's the only reason it's being done.
Bankruptcy will occur when Seagate is no longer is able to find someone lend them more money. It's a ponzi scheme, now investors just provided finance at now higher intrest rates so Seagate can service the previous loans and operating costs. Seagate need to earn their way out of this debt, I don't see opportunity for yet another loan without shipping significant $ per TB advances. HAMR or other businesses earning big is the only way out..... Is that possible?
If you’re interested Macroaxis does a Probability Of Bankruptcy calculation. Seagate is around 30% probability of bankruptcy in the next two years by their models. Most well run healthy companies are less than 1%. BTW Gap and Rite Aid are both at a 31% chance of bankruptcy, so yeah things aren’t so hot.
Great politics, super fun…….
Some companies factor bankruptcy into their business plan. It's been working fine for Trump over several decades now. Course his minions will claim it's got nothing to do with his practice of screwing over vendors and contractors since that is what they like about him.
Is the Pope Catholic? Did the sun rise in the east? I'd say, unless he!! freezes over, the odds are good that a bankruptcy is in the forecast. I'm not being a hater. Business is business. c-gate would not be the first company to do that this or next year.