Perhaps you don't understand the debt markets or balance sheets. Just read Fitch's recent report and upgrade of outlook on STX bonds. I have rarely read such a glowing report from a ratings agency. I think STX's corporate debt issues all trade at enviable premiums to par.
WDC and STX are both doing 4 to 5 billion $$$ a quarter in sales.SSD drives are too expensive compared to HDD's, the PC makers will go back to making Ultrabooks with much more cost effective HDD's. STX & WDC will both dominate the space. Couldn't look better.jmo
In some cases debt is good. anyway, if they were concerned they would not be buying back shares, what's the interest on the debt? in this low interest environment debt could be a very good. When the debt is paid just think how high the dividend will be. horray for seagate; keep selling those drives.
Peter Lynch is not even yesterday's news in investment philosophy; he's more like last century's news so his not being willing to touch it is about as meaningful as Cramer's moment to moment weathervane method.