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Technology Stocks : Disk Drive Sector Discussion Forum

WDC 181.08

+3.5%

Dec 19 9:30 AM EST

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To: Sam who wrote (3578)	6/9/1998 5:36:00 PM
From: Tom Simpson	Read Replies (1) of 9256

>I'll bet they'll be showing a peachy-keen quarter. Could be.....but they will need some cash help to finance the necessary growth in their Dell receivable to do that. Max is pretty thin on cash, and most of their assets are tied up in inventory and receivables focused on the OEM box makers. You can almost figure Maxtor quarterly revenue by looking at Dell's. WDC has been squeezed more into the retail distribution channel where PC's haven't been moving all that well lately and inventory is a sloppy affair. I'm surprised by this "technical violation of covenants" stuff. They reported over 570 million in cash on 3/28 filing along with balanced payables/receivables and just 200+ million in inventory. Hell, I was trying to figure out why they thought they needed so damn much cash from that convertible. Either I'm an idiot (don't say it) or there is something fishy here. Best Regards.....Tom PS....I just relooked. 250 million credit line 50 million outstanding. And they've got to have at least 300 million left of the 570 cash. Give me a break. The announcements of imminent financial demise are just a bit premature.

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