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Technology Stocks : Western Digital (WDC)

WDC 269.39

-7.2%

3:59 PM EST

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To: steve goldman who wrote (7142)	11/6/1997 1:13:00 AM
From: Henry W Singor	Read Replies (1) of 11057

>Anytime anyone needs any info on WDC's trading, preopens, after hours, real time pictures and my feel for it (since I watch it with about 300 other stocks all day long), feel free to call me on the trading desk. Hi Steve Thanks for the gracious offer I'll take you up on it someday when the market seems to be trading nonsensically again. As for WDC and the Disk drive stocks. It has been my experience that they are very dependant on the average selling price of drives going out the door. Recently some players have dumped low capacity drives at fire sale prices to clear inventory. In Mid October Chuck Haggerty WDC's CEO said that this inventory would be cleared from the distribution channel in 2 to six weeks. I checked one large distributor this weekend dirtcheapdrives.com and found that the really cheap Fujitsu and Seagate drives that they offered a week ago were no longer offered. The price of a 2.1GB drive at this distributor is about $170-180 while the price of a 3.2GB drive is still around $199 to $216. Right where it has been for the past few months. 4.3GB drives are around $250 while 6.4GB drives seem to be holding firm at around $350. What really matters is OEM pricing but since I'm not privy to that information I make due the best I can. My point is that these mainstream drives are not selling at firesale prices. The pricing pressure reported on the desktop seems to have been a short term inventory correction for a couple of companies. WDC is a well managed company. They have a great track record and should be praised for the 100 000 2.1GB/platter MR head drives that they shipped in Sept. My only reservation had been their MR transition but they seem to have accomplished that flawlessly. At the beginning of this year you would have paid $30 or more for this stock with the uncertain transition to MR heads before it. Now that they have proven that they can make a drive with MR heads in volume they are increadibly cheap at $30-$31. Best of luck but I think you have chosen wisely to invest in WDC. This is a solid company with an outstanding track record. Henry

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