Actually I still have a position in Maxtor. I had stock in WDC, bought it around 3.75, sold it around 7.25, thought I did well with it, obviously sold it too soon in hindsight, but I wouldn't mind selling everything too soon like that.
Gus thinks the DD sector is getting revaluated. He may be right. The wind is at their back right now, sector wise. That is, it isn't in anyone's interest right now to start or maintain a price war. I guess Hitachi might be a wildcard, I'm not really sure what is going with them, but that business was losing big bucks with IBM, I think they are still losing big bucks, so it's hard to see them starting a war. They depend more on mobile drives and high end drives than desktop so as far as WDC and MXT are concerned, I don't think they are much of a factor. STX management and bankers want things to go well here, and I suspect that they will do everything they can to make sure that they do go well as they continue to sell their stake. Just as they did everything they could a couple of years ago to make sure that DD companies got a low PE and were a mess.
They are classic goniffs, if you get my drift.
All JMHO, of course. I'm not trying to be pejorative here, just descriptive. They are, I'm sure, the toast of the town in investment banker circles. |
