Could be, Rob. STX is probably a buy, but having just reread posts from the LBO days, I still can't buy those guys. There are lots of stocks out there, why support crooks? And, as their impending secondary reminds us, there is a lot of stock that will be coming up for sale on the next few years, as those crooks sell off their ill-gotten holdings for huge profits. So every time the stock is strong, more stock will be released and sold. On the other hand, they can depend on companies like SB, Lehman and GS to support them and the stock price to get the stock sold at relatively attractive prices.
WDC looks like it could be a reasonable trading vehicle. Maxtor, on the other hand, is so washed out at these levels that perhaps one could make some money there too, if you can be sure that they will survive. I would guess that they will, if only because the PC vendors would prefer to have more than two major companies to buy from and play off of each other. But MXTR isn't in the higher growth DD areas, except for PVRs. And, since WDC has apparently turned RDRT around and is running a decent head business, MXTR is at a disadvantage in their cost structure vis a vis the other two.
I would still play them as trading vehicles, though, and not hang onto them for too long. |
