Disk Drive Sector Discussion Forum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Disk Drive Sector Discussion Forum

WDC 181.54

+1.1%

Dec 26 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Pierre-X who wrote (3807)	6/25/1998 10:59:00 AM
From: Robert Douglas	Read Replies (1) of 9256

Those who are familiar with my theory of cycles know that the stage for a boom is set by lowball forecasts that choke off capacity expansion. Looks like we're (finally) starting to see some nice, grim forecasts. Nice grim forecasts coupled with nice grim Income Statements that deprive these "hell-bent for expansion" CEOs of needed capital and nice grim Balance Sheets that stop the banks from lending to them. The nice thing about the disk drive business is that end demand should grow. It this were the copper industry or the oriented strand board industry, which have recently suffered the same fate due to haphazard expansion, you would worry because end demand grows very slowly. If your forecasts are accurate and we enter an era of demand growth, this excess capacity should be put to use rather quickly.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next