Lynn; here was the only thing I have found so far -- this plus a good buzz on the floor and the gain in VRTS could be the reason...
Disk Drive Stocks Up; Price Competition Seen Easing
By LAURA ELIZABETH POHL
NEW YORK -- Good times may be ahead for U.S. disk drive companies, said an industry watcher, as suggested by a rise in their share prices Thursday.
"I see an industry which looks a lot more profitable," said Jim Porter, president of California market reseach company Disk/Trend. "You've got a market situation that's stable. It will probably be stable for the rest of the year."
Over the past year, disk drive companies have been duking it out in a crippling competition on price. Contracts with companies like Compaq Computer Corp. (CPQ) and Dell Computer Corp. (DELL)went, in effect, to the lowest bidder. In 1999, every company in the disk drive sector warned its June
quarter earnings wouldn't meet expectations.
"They were chewing each other up going for market share instead of profit," Porter said.
Now, as demand levels with production and companies' excess capacity gets "soaked up," bidding for business won't go below the point where a company can make a profit, Porter thinks.
While Porter said he didn't have an instant diagnosis for Thursday's rise in the sector, the improving price environment appears to be a factor.
Shares of Western Digital Corp. (WDC) recently traded at 5 5/16, up 3/4, or 16.4%. Volume was heavy at 4.6 million shares compared with a daily average of 2.8 million.
Seagate Technology Inc. (SEG) gained 3.4%, or 1 7/8, to recently trade at 56 3/8, on volume of 1.5 million shares compared with a daily average of 2.3 million.
Maxtor Corp. (MXTR) shares recently traded at 11 5/8, a gain of 1 5/16, or 12.7%. Volume was 8.0 million shares compared with a daily average of 2.2 million.
Shares of Hard Disc Drive Group (HDD), a unit of Quantum Corp., changed hands at 9 1/4, up 1/2, or 5.7%, on volume of 719,700 shares, compared with average daily volume of 844,870.
Read-Rite Corp. (RDRT) shares recently gained 3/4, or 19.8%, to trade at 4 17/32. Volume was 4.4 million shares compared with a daily average of 1.4 million.
Komag Inc. (KMAG) changed hands at 3 1/4, up 5/8, or 23.8%. Volume was 2.2 million shares compared with a daily average of 711,973.
Shares of HMT Technology Corp. (HMTT) gained 10.6%, or /16, to trade at 3 1/4. Volume was 1.2 million shares compared with an average daily 401,750. |
