SEG mentioned in Dow Jones' Market Digest (July 08, 1998 8:31 PM)
Disk Drives
Disk-drive makers also got a boost Wednesday, as
investors searched for value plays in the tech sector.
Among the big movers in the group were SmartMoney
picks Innovex (INVX) and Seagate Technology (SEG).
'People are looking for opportunities that seem to look
like values,' says analyst Joel Pitt at Deutsche Morgan
Grenfell.
With the exception of Western Digital (WDC),
disk-drive makers may have a more positive outlook as
they start to report quarterly earnings, says Pitt, who
doesn't expect any positive earnings surprises. "After
hell, everything looks better," he says.
Disk-drive makers may see a slight pickup in demand as
PC inventories have been reduced, Pitt says. He
cautions, however, that there is still a large amount of
disk-drive inventories and competition is as fierce as
ever. For example, the market share of the three leading
makers - Seagate, Quantum Corp. (QNTM) and
Western Digital - has dropped to 56% in the first
quarter from 70% a year and a half ago, Pitt says.
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