Well, I think BS is being really conservative. But that's fine with me, leaves plenty of upside for later on.
If Peter van C. wasn't blowing any smoke last night (and I have no reason to believe that he was), then DSS is a strong buy here for long term gains. It is trading up nicely this morning, especially given the general market blues; maybe that will go away later in the day or next week as the blush of the CC wears off. i don't know. I would feel very comfortable buying it here (at 15), even though it may go lower before it goes higher.
The CPQ problem makes sense to me, their buying of DEC hurt both HDD and DSS, I think, merging two of their largest customers, along with HWP. The one thing that does bother me is that back in August at the CC announcing the HDD restructuring, MB suggested in his opening remarks that the inventory problem had been fixed (as you all may recall, this was a rather hurried statement, when he was also saying that the CC had nothing to do DSS, just HDD, so it is possible that I misunderstood him). Now it is a still ongoing problem. Well, I can believe the latter, CPQ/DEC is an ongoing problem, the problems at DEC were enormous, at some point it will be alleviated, let's hope with CPQ still in a position of strength. A further consolidation of PC/systems builders is not in either consumers' or suppliers' interest at this point.
I'm rambling here, sorry. I'm not at home right now, and my CC notes are, so I can't transcribe them now, but I would urge anyone considering an investment in DSS, EXBT or STK to listen.
Meanwhile, on another note, it would appear that STK may be seeking a buyer. Anyone have any speculations on who might be interested?
StorageTek Engages Goldman, Sachs & Co. and Mckinsey &
Company
LOUISVILLE, Colo.--(BUSINESS WIRE)--Oct. 15, 1999-StorageTek(TM) (Storage Technology Corp., NYSE: STK) today said that
it has engaged Goldman, Sachs & Co. and McKinsey & Company to assist StorageTek in its on-going analysis, evaluation, and
consideration of various strategic alternatives, such as financial restructuring, acquisitions, divestitures, spin-offs, joint ventures, and
business combinations that could include a sale, mergers or partnerships. The company said it will have no further comment until it
has completed its review of strategic alternatives.
About StorageTek
StorageTek is the preeminent provider of network storage. The company's strategy is to provide ``Open, Intelligent and
Integrated'(TM) solutions that combine storage products, storage management software and storage services. StorageTek solutions
help customers collect, move, store, share and protect all types of digital content on platforms ranging from laptops to enterprise
servers. The company, with headquarters in Louisville, Colo., reported revenue of $2.3 billion in 1998. Information on StorageTek is
available on the World Wide Web at www.storagetek.com or phone 1-800-786-7835.
The assumptions, expectations and forecasts contained herein regarding StorageTek's future plans, financial results and performance
may constitute ``forward looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. These
statements involve a number of risks and uncertainties that could cause actual results to differ materially. Some of these risks and
uncertainties include, without limitation, the successful implementation of any strategic alternatives, the timely introduction,
manufacture and market acceptance of products; successfully containing operating expense levels while increasing revenue;
managing aggressive competition and pricing pressures on the Company's products and services; developing new distribution
channels for the Company's products; the impact of year 2000 preparations on the company's customers and suppliers and
purchasing patterns; and other risks that are discussed in StorageTek's reports on Forms 10-K, 10-Q and 8-K that are filed with the
Securities and Exchange Commission (SEC) and which are available on the Internet.
TRADEMARKS: StorageTek and ``Open, Intelligent and Integrated' are trademarks of Storage Technology Corporation.
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