Stich - I am certain that you participated on the RDRT CC. Given my assumption, I am also sure that you listened to Cyril's comments and relatively upbeat remarks.
First, the company admitted making crucial errors on the 2.8 platform. Importantly, however, this platform could be the shortest lived platform to date. Thus, it is logical to deduct that RDRT's mistakes will also be short lived as the company is applying its knowledge to newer (3.4) platforms.
Second, would your opinion change if RDRT qualified soon on the 2.8 platform at SEG, WDC, and Maxtor.
Third, RDRT is working diligently with Maxtor on the 3.2-3.4 platform. This would be great news if they qualified here first. I am wrong?
Fourth, RDRT was the first (ahead of IBM I believe) to ship prototypes of GMR heads to customers. My sources have suggested that IBM failed to meet customer timelines.
Fifth, I understand (and this may be mere rumor) that IBM was tossed out of Maxtor on the 2.8 platform. Any thoughts here? If so, not great news either.
Sixth, IBM and WDC have NOT YET executed a definitive agreement. It is mere speculation to argue that the deal is 100% negative for RDRT. Hence the devaluation of the stock. The reality is that nothing may happen. If I were IBM, I would engage in similar activity and then crush WDC as a viable disk drive manufacturer. What a way to eliminate the competition!!
Seventh, can you comment on your acquaintances view of the news. I am sure that he can shed some meaningul light here. Or, are your relatively negative views based on your discussions with this individual?
And, lastly, it is a mistake to compare RDRT with APM. RDRT is much further along on GMR projects and is still a very viable competitor.
IMO, the stock is depressed for several reasons. However, RDRT is clearly a value buy at present (obviously not a momentum stock today) and will likely double from present levels over the next 12-18 months. All of you industry analysts are micro-managers today and miss the big percentage moves in equities. Take ASND for example. All of the street clowns are upgrading the stock 100% above its lows. I am selling into this liquidity. I will do the same with RDRT.
And - could you provide me with some insight on your views if RDRT did qualify at the 2.8 and 3.4 platforms soon. Thanx - I enjoy the debate. The STUD!! |
