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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: P.Prazeres who wrote (56434)	8/18/1999 6:42:00 PM
From: Lane Hall-Witt	Respond to of 120523

Paulo, The DD sector has been amazing the past week. I've been playing it through MXTR since 4 13/16. I looked at WDC under 4, but I had going-concern worries and so passed on it. The other DD companies started to rally a bit before WDC, and I read that as a sign that the Street knew WDC would fail or cut back substantially. (Also, the fact that WDC had rallied hard right before dropping under 4 made me think we had seen an institutional pump and dump to get out before a failure.) I've heard that the drives are benefiting from a clearing of the channel -- finally working through inventory that's been filling the warehouses. WDC's production cutback in Asia undoubtedly is contributing to the improved sentiment, as perhaps is Quantum's declaration that it will no longer cut prices in order to protect market share at all costs. I don't know how long this can last, but I'm very happy with the great volume and price action I've seen in MXTR lately. I'm planning to keep a tight stop on my position from here on out, because I don't know how much more upside there is in the short- and intermediate-term future. The DD sector still has pretty intense problems to work out: way, way too much productive capacity and resulting absence of pricing power. I hate to say it, but the industry really needs a major failure in order to reduce productive capacity--. Good luck!