IMO, I'd rank the companies Quantum, Western Digital, then Seagate. Quantum is much more diversified with Digital Linear Tape, etc. Western Digital has zero debt and good inventory control but is being pressured heavily by Fujitsu (and probably Maxtor). Seagate doesn't look too great, they didn't handle their vertical integration very well, they're losing market share and their CEO is a brain-dead SOB (IMO). Lehman Bros. said that Quantum's DLT business was worth >$40 per share. Since QNTM is currently at 27 5/8, the market is apparently valuing their other business (disk drives, solid-state drives, etc.) at -12 3/8, which is somewhat ridiculous. Quantum also has some new technology, NFR heads, due in April.
This is the "Reader's Digest" version, obviously overlooking many details, but you may wish to give Quantum a look.
P.S. I'm long on Quantum, but have options on WDC and APM (which I regret). |
