LK,
1. "There is no doubt in my mind that despite their denials, they are lusting to get into the RAID business. Why go head to head against EMC when you can supply the artillery to IBM, Compaq, HP and Dell?"
What are you saying here? I heard nothing about RAID, and why on earth would they want to take on EMC when they surely have enough to do to keep up in the DD & DLT businesses not to mention the new storage system/appliance business? I must be misreading your post somehow.
2. "But you gotta be pretty incredulous to swallow their b.s. that June Q would be weaker."
Yes, they said that there were some inflated expenses, as you pointed out. But with double digit declining ASPs, and with, apparently, MXTR, WDC and Samsung all trying to gain share and/or just survive, with SEG and (perhaps) a fledging Finis trying to challenge BigFoot on the low end of the desktop, combined with seasonal weakness, I don't find it incredible that June might be weaker. Also, don't forget that the Atlas drives are still qualling; the 10K in particular could take longer since it is their first 10K drive. Same with the FB CX.
Did you note that MB, in his closing remarks, was careful to say that they were "very pleased" (emphasis on the "very") with their performance in tape, and (pause) "pleased" with their performance in drives?
I still think, as I said earlier, that the stock is a buy. But when the tracking stock becomes a reality, there will be some heavy selling in the drive stub. Will probably create a nice BO, especially in the dark dark days of Aug/Sept. |
