(In an English pirate accent)"Aye, these be dark times, mates"
Ya just gotta believe... 38% performance improvement for TFI for under a buck a platter (for mere licensing I'm sure it'll all be under a buck- their hopes of $1/platter must be counting on higher margin resales and eventually some hi margin manufacturing) is just too good to pass up, unless disk drive makers are stupider than I'm betting on! And the 20%MR is probably just the beginning, it can probably be tweaked up some more, just like TFI was first reported publicly to improve by 33-35%, and that I'm sure was up from where they started. I just can't think of a real good reason why they won't use KM in all disk drives, regardless of the long taxing wait we're going thru.
Agree we're in a holding (slight downward motion) pattern till more announcements. Still, selling at 13X 97 eps and 8X 98 eps? This is ridiculous, even more so when you consider they've got about $.70 in cash, so those multiples are even lower. Still, we'll all breathe easier when someone else signs on. I've just resigned myself to the market's insane pricing scheme of AXC, nuttin I cin do 'bout it 'sept wait em out and sell to future fools who'll relieve me of my battle tested shares at ridiculous hi pe multiples some years from now.
Just a reminder about Western Digital, their own engineers presented their very own white paper at the MMM in Nov 96 on the benefits of KM. See back some posts for Gus's URL for it. |
