When people report what was said on CNBC or whatever, sometimes the facts are interpreted slightly.
I've seen at least a couple of posts that attribute today's rise in the disk drive sector stocks to remarks QNTM's CEO made on CNBC this morning. Most of us are grasping for some logical explanation for today's upward prices, especially because we were expecting the sector to get slammed because of the after-market-hours earnings warning by QNTM yesterday.
But I saw Brown of QNTM being interviewed on CNBC this morning. The interview was brief, lasting a few minutes. And Brown did not say, as some people have quoted him, that >>a bottom in the DD industry will be found soon, and that this will be fueled by consolidation.<<
What Brown said was, that there was much more consolidation in the industry (fewer players) now than even a few years ago, and this allowed QNTM to have better visibility of its markets.
And Brown also said, some of these inventory correction downturns (my words) take 3 quarters to work themselves out, and the inventory problem has, so far, lasted a little over 1 quarter.
Brown also said that DLT sales growth had slowed from 100% to 70%.
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I don't understand how QNTM is currently experiencing 70% DLT growth, because I thought there was an inventory problem with DLT, and the current DLT growth was way below 70%, but maybe Brown was using some basis for measuring growth that is not directly based on current sales.
Regards,
Larry
Maybe TBowl or Lawrence Kam could point out any errors I've made in this post.
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