What's the prob with the HDD makers/suppliers? HUH?
When APM hit something like $5 a couple weeks ago, you had to figure the bottom was being scraped. I mean, none of the legions of MMs, insiders, or money managers sitting on tonnes of this stock is going to let it slip under $5. Not for long anyway.
$5 is the support de 'resistance for most big ticket stocks.
Under $5, you are in danger of losing NASDAQ listing, cannot be shorted, cannot pass GO, cannot collect $200. Go to Jail. Under $5 you are Wallstreet Dogmeat. Any wonder that end of quarter window dressing saw some bottom picking and support mongering for this once-upon-a-darling stock?
So why in the name of magneto resistance are these guys dusting the floor of the stock houses? Everyone says it's "over supply, or too much inventory". They're right, but not in the way they're talking about. The HDD technology has passed normal need.
Now adays, you buy a new computer and you get a 5-8MB HD. Are you going to run out and buy an external supplement for this monster? Or upgrade the HD in your computer? Heck no. But until just recently, you might have. Second market sales used to be a big part of the HDD makers income. So yes, there's too much HD inventory. Too much inside the computers themselves, and that's causing too much inventory in the warehouses.
The HDD makers just got too good at what they did. They worked themselves out of a job. Somebody needs to teach the old idea of "pacing yourself" to these hi-tech overachievers.
trader ex |
