<<Well, I think Fox is right and he is brave to state his opinion considering it's contrary to
the views of most analysts.
He's my support of Paul, with some reasons behind it.
First, not only will the fourth quarter be rough, but the third quarter will be troubling
across the whole market, not just storage, which will be one of the hardest hit.
>>
first, I'm curious why you believe storage will be one of the hardest hit?
with respect to Paul Fox, his call does not relate to year 2000 glitches, but rather two anticipated soft fourth-quarter spending. He states that he believes some of the spending will be pulled forward to the second and third quarter. He doesn't bother to say that other spending will merely be deferred until after the fourth-quarter. So from a long-term standpoint, weill revenues really be lost?
Also, it is typical of Fox to throw fuel on the fire. I can understand his concerns with EMC, but his calls and Seagate, Maxtor and Hutchinson take no consideration of current valuation. On April 14, Fox stated a target price of 50 to 55 dollars per share and reiterated his buy recommendation. On April 15, he downgrades them. He downgrades MXTR even though selling at only about one-third of its former high, and downgrades Hutchinson selling at one-third the target price Fox had only three or four weeks ago. -Z
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