Disk Drive Sector Discussion Forum Message Board

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Technology Stocks : Disk Drive Sector Discussion Forum

WDC 139.09

-0.8%

Nov 21 3:59 PM EST

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To: Sam who wrote (7143)	9/29/1999 8:44:00 AM
From: T Bowl	Read Replies (1) of 9256

According to an H&Q report: <<The faulty component was a chip that controls the spindle motor and voice-coil in the drive. WD has localized the problem to one particular supplier's facility. Within our coverage universe, no other manufacturers appear to be affected. Maxtor (MXTR, $6.19, MP) and Seagate (SEG, $29.88, MP) indicated that they do not source this component from that particular supplier, and although Quantum (HDD, $7.31, MP) could not confirm this fact, we expect that MKE has a different supplier as well. ... Our best estimate is that if WD can recover from this problem within 2-3 weeksand return to its expected production rates, this temporary imbalance in supply and demand will not be significant enough to stabilize pricing on alonger term basis. We noted last week that Quantum and Maxtor should benefitfrom WD's mis-execution this quarter, and this latest announcement representsfurther upside opportunity for both. However, Quantum's quarter ended on 9/26and Maxtor is already running close to full capacity so most of any upsidewill hit in Q4.>> todd

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