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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Robert Douglas who wrote (6780)	7/13/1999 1:58:00 PM
From: Sam	Respond to of 9256

Robert, Thanks for posting that report. <<What do you suppose he means by "something has to give"?>> That was rhetorical, yes? What we've been saying for awhile, consolidation in one way or another has to happen. The best thing for the stock prices of SEG and QNTM for next year would be a continuation of recent pricing trends for awhile more. Even into the fall, if necessary. The bad part of the report was his belief that IBM and Fujitsu are the ones taking a bigger role. But he says later that drives will be a drag on IBM's earnings, and at least apparently doesn't mention Fujitsu (was this the whole report, or an edited version?). I suppose those aren't contradictory, but can either company keep losing money in drives without pulling in their horns at least somewhat and focus on business which will be more profitable for them?

To: Robert Douglas who wrote (6780)	7/13/1999 3:23:00 PM
From: La Traguhs	Read Replies (1) \| Respond to of 9256

<Moreover, something has to give in the next quarter or so for the weaker vendors given the precarious nature of their and their component suppliers' balance sheets.> Well, we're just waiting for the "consolidation" shoe to fall. Seagate is trying their darndest, using their balance sheet, to make it happen. I'm guessing Q4 is when things will get sticky. Seagate has stated in their preannouncement that Q3 looks no better than Q2 will and assuming that is the situation for the rest of the HDD players, Q4 should be decision time for a few companies. Regards, LT