Stitch, Larry,
On how to fix the HD oversupply (SEG or QNTM buying Maxtor), and Maxtor's "IPO will never see the light of other then "red herring paper". And all that was for was to set the playing field."
Interesting notion. But, Larry, you suggest SEG or QNTM use "stock as currency". Why would Hyundai want SEG or QNTM stock? They NEED currency NOW, green US stuff, not won, and not toilet/wall paper which might be used for currency at some unspecified time in the future. Plus, why would SEG or QNTM want to use their cheap stock to buy MXTR's capacity and designs? SEG seems the likelier buyer to me--they have more cash than QNTM--but their new hire (of a couple of weeks ago) of a Maxtor VP in charge of new product introduction may have told them a thing or two to discourage it.
I still believe that this will be a repeat of 199-93, when MXTR flamed up and down like a bad rocket. Ditto for Samsung. Getting into this business may not be that hard if you have a lot of cheap cash and can get an HD engineer or two and a president with good sales contacts. Staying in this business, though, and making consistent money in it, is a different story, especially when the cheap cash dries up. These people (at Hyundai and Samsung) seem to me to be a little dotty; they want to be be everywhere, and as a result, if they don't figure out where they are going to focus soon, they will end up being nowhere. It will be very interesting to see if this Maxtor IPO gets off, and at what price, how the company is valued.
I sold my EMC (at a nice gain) and SMOD (at a nice loss) last week. Bought a little more MTIC after its dive, leaving the rest in cash for now, waiting for some great bargains. May be waiting until the late summer, maybe even the fall. We'll see. |
