But there is a silver lining in the Seagate story - valuation. At current levels, Seagate is priced at ~8x trailing P/E, ~6x EV/ EBITDA, with a dividend yield of ~6% to boot. Thus, we think the stock might be worth a look for income investors, as HDD revenue has turned out a lot more stable than many had initially anticipated. Plus, with sentiment already very bearish on the stock (short interest is at ~11% of float ), the bar is low, and we think Seagate might be ripe for a squeeze.