Disk Drive Sector Discussion Forum Message Board

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Technology Stocks : Disk Drive Sector Discussion Forum

WDC 160.04

+5.2%

3:59 PM EST

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To: Kevin Linder who wrote (8257)	4/16/2000 12:41:00 PM
From: Sarmad Y. Hermiz	Read Replies (1) of 9256

>> I just have to wonder if the pricing is so low that there is not much margin of profit even if prices remain stable. << That maybe the explanation of why WDC is still losing money. The silver lining is that with such low margins capital investment in DD equip stops because there is no reason to invest just to lose money. So if and when demand outruns supply, the DD companies will mint money for a couple of quarters until supply ramps up and everything goes down the toilet, again. Is there a way to find out how much excess capacity still exists in the DD components and assembly business ? From reading the posts here it seems the supply is infinite. I really can't believe that. I just can't imagine that all these managements can't find a better use for their resources than to subsidize cheap supply for Dell, Gateway, EMC, etc.... But the evidence so far is against me. -Sarmad

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