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Technology Stocks : Disk Drive Sector Discussion Forum
WDC 181.27+0.9%1:36 PM EST
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To: Robert Douglas who wrote (4163)8/12/1998 1:17:00 PM
From: Sam  Read Replies (1) of 9256
 
"What Mr. Conner seems to be telling us is that his new disk drive company will add nothing to the technological body of knowledge and take no business risk. Something doesn't smell right about this whole thing."

Its great work if you can find it.

But he's probably putting up some of his own substantial fortune; I can't imagine CPQ would bankroll him without him risking something besides his reputation. Still, it seems like a sweet deal for him, depending on how much money he has to put up. All he has to do is get one of the many ECMs to agree to devote a couple of factories to his output. And if he is manufacturing in the Far East, which he almost certainly is, his and CPQ's dollars will go a long way. Puts the pressure on SEG to get their sub-1000 entry out the door in a hurry. They better have some sharp, efficient people focussing on it, or they'll get blindsided. CPQ will probably win either way--one way like they did in the mid/late 80s, with some substantial capital gains if FC is successful, or, if not, then they will have some great, cheap drives from other manufacturers, which may make up for whatever capital loss that they will have to write off on the venture.
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