I have to laugh at T-Bowl's posts. You are clearly intelligent, but your bias to the short side on RDRT at present levels is completely inconsistent with your understanding, or lack thereof, of bottom fishing. We all know that the demand picture is cloudy. But, as soon as the outlook turns, the entire sector will turn. Witness INTC, SMOD, and the entire SOX index today. Oh yeah, AMAT and KLAC too. BTW, KLACs chairman stated on CNBC this morning that he did not see a bottom in the sector YET. BUT, the stock rallied. And, similarly, RDRT will TOO rally on the expectation of improvements ahead. By the time fundamentals are cranking, expect RDRT to be in the 20's.
As for the conference call, I thought it was VERY upbeat with one exception, the demand picture. On the technology front, the co. thought that they would surpass IBM on GMR heads within 6 - 12 months. In other words, the GAP IS CLOSING. Also, the Co. thought they would outperform the competition at the 3.2 and above platforms. Several Qual announcements should occur this Q. In sum (I left my notes at the office), I was much soothed, but still short term bothered by the demand picture. As for technology, RDRT is a formidable competitor as they are now 100% MR. Next stop, GMR.
PS - My personal opinion is that Mark Re is doing a bang up job. This is not a company to short at current levels. the STUD!! |
