CRUS, good buy? Message Board

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Technology Stocks : CRUS, good buy?

CRUS 120.82

-0.5%

3:59 PM EST

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To: pokysconductor who wrote (7479)	2/6/2000 5:14:00 PM
From: ptrader	Read Replies (1) of 8193

Let me give you some yardsticks. In volume desktop drives with 1 platter/2 heads, the electronic content is about 20-25% of total cost. For example, a drive that cost $80 to build, about $16-20 dollars is electronics today. To get the chip(s) cost subtract about $2-4 dollars. This percent will continue as drive cost comes down. This cost will bottom at $12-14 in the next few years. Again, this is for the lowest cost disk drives, not highend or mobile. I think it will be hard to capture 50% of this business, a better number is 30-40%. Your EPS number is too high for this business. But, the units continue to grow producing a very nice increasing business going forward.

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