Disk Drive Sector Discussion Forum Message Board

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Technology Stocks : Disk Drive Sector Discussion Forum

WDC 242.05

-0.5%

10:37 AM EST

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To: Mark Madden who wrote (7836)	1/23/2000 2:21:00 PM
From: Sarmad Y. Hermiz	Read Replies (2) of 9256

>>We have yet to see the seasonal price drop that normally occurs at the end of the 4th calendar quarter. << Hi Mark. The reaction of DD stock prices so far implies that speculators are still betting on a non-recovery in the structure of the industry. Contrary to all logic, the short position in WDC has increased from 8.7 M shares to 10.5 M. from 12/14/99 to 1/14/00. According to Barrons. This means the rise in WDC stock from 3 to 6 did not cause any panic buying. Instead the short sellers are thumbing their nose at the hopeful buyers. Also the reversals in each of the DD stocks when they rise in reaction to reduced losses or increased profits, then are swatted down in a wave of profit taking and short selling. I guess it is still a long road ahead. Is there any way to tell if price stability at the current price level is sufficient for increasing profits ? SEG and HDD are already profitable. MXTR is very close. WDC is still $60 Million away. That is approx $8 per drive. Is that practical for WDC to reduce cost by that much ? Or are they doomed without a price increase ? It seems the shorts are betting on the doom direction. -Sarmad

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