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Microcap & Penny Stocks : JTS- "A Nordic Drive in Every PC and laptop"

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To: Ben Antanaitis who wrote (1423)10/10/1997 5:09:00 PM
From: David Krafcsik   of 1985
 
Well, you certainly seem to have put some thought into the relative speeds and/or merits of the two drives. I have to admit I am more worried about people who don't put much thought into their decision, and just see X Giga-bytes for X dollars. In that case the Quantum Bigfoot drives are the clear winners. This is worrisome (as a JTS stockholder) because they always seem to be sitting right next to the JTS drives in the mail order catalogs I have looked at (like Tiger Direct for instance).

Perhaps this is why JTS has claimed that they will be aiming more at OEM sales rather than direct sales. I see this as a good move for two reasons. JTS still doesn't have great brand name recognition with the average consumer. This must severely hurt them in direct sales, since most people would not buy a brand name they don't recognize regardless of price. The second (and perhaps related) reason is that an OEM has (hopefully) better knowledge of the different drive manufacturers and also is able to justify going to a lesser known brand for even a small cost savings per system (which may have a big impact on their net profit margin).

Of course this all assumes that the JTS drives are cheaper than the competition, which in the Bigfoot case ain't so. But again, the Bigfoot drives tend to blow everyone else away on cost also, including Quantums own higher-end drives.
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