From current Barron's at least someone is buying DD stocks:
On the other hand, Rajaratnam has been
buying other turnaround stocks, like the drive makers, "rather than chase
high-multiple stocks." That's an interesting call, given Rajaratnam's track
record on the group. When we talked to him last November, he'd been
shorting the drive stocks. A brilliant call, as it turned out.
Still, drive-industry fundamentals remain weak. Alan Lowe, president of
ReadRite, a Milpitas, California,
maker of disk-drive heads, asserted that March was "definitely the bottom"
for the drive industry, but warned that there remains "extreme pricing
pressure." Steve Luczo, chairman of Seagate
Technology, confirmed that his company has started a program to
produce drives specifically for the sub-$1,000 market, and forecast that
inexpensive models of that type would quickly account for 20%-25% of
desktop PC sales.
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