Disk Drive Sector Discussion Forum Message Board

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Technology Stocks : Disk Drive Sector Discussion Forum

WDC 155.45

+3.0%

3:59 PM EST

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To: Z Analyzer who wrote (5005)	11/22/1998 6:41:00 PM
From: Mark Oliver	Read Replies (2) of 9256

Z, the reason why I am hesitant on Hutchison is due to simple ideas on price-earnings ratios as a method of valuation. The fact that they are going from a hemorrhaging loss to breakeven is a good step forward, but they still have a lot to prove. Hutchison has a good product, but there is competition. Granted, they seem to have the best product available. Still, I look at other companies I hold stock in and see better revenue and earnings growth (not to mention actual earnings). So, buying Hutchison now in the low 30s assumes the best scenario; for their recovery, the industry's recovery, and a strong stable stock market. At the moment, I am not so confident. Hope I'm wrong. As I said, I continue to like Hutchinsons opportunity to develop TSA. Component suppliers that can achieve a majority supply position are much more interesting than companies like Quantum and Western Digital who have no pricing power in an oversupply situation no matter the fact that unit sales are continuously increasing. Regards, Mark

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