Gentlemen,
We've seen the storage sector go into total destruct in 2 months. In hind site, it may have been predictable, but if you're like me, you've enjoyed building a knowledge base on these companies and haven't been able to sell the lot, even when it may have been the wise thing to do. Each day things have gotten worse. Now what? When do we hit bottom?
If you believe what you read, short term we still see big problems ahead and little reason for any turn around for at least 2 quarters. Sure, component costs and overhead are falling, but so are prices. What's the point in the face of obvious risk?
So, who's going to be the winner? Is there still reason to hold these stocks, or would it be better to sell out and wait for better days? Maybe sell calls? Sell short?
On the other hand, have we hit bottom and can reasonably expect to see some come back in January? Are we over sold? Will there be consolidation?
The micro view points we often read are very telling, but in the end, is the macro saying things stink and it isn't getting any better? Personally, I feel with the final blow, QNTM disappointing and DLT problems, I've lost faith.
Regards,
Mark
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