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

To: Mark Madden who wrote (6987)	8/20/1999 2:33:00 AM
From: fiberman	Read Replies (1) \| Respond to of 9256

Does anyone on this thread have any comments, or opinions about the new Conner Technologies' company? Apparently, they will be targeting the low end HDD business and will ship products by the fourth quarter. Can they be a new serious player, or are they just hot air? Thanks in advance.

To: Mark Madden who wrote (6987)	8/20/1999 3:08:00 AM
From: La Traguhs	Respond to of 9256

<$100 million in price cuts will damage competitors for a quarter but these companies will survive as wounded animals to destroy future profits> I submit that Seagate's balance sheet can go several quarters with continued price cuts while a Western Digital has perhaps two, maybe three more quarters left (under the current market conditions) to stay the course. With the smart (or just lucky) non HDD investments made by Seagate in Veritas, Sandisk, Gadzooz, etc., I think the recent Seagate accumulation of cash could be better invested, than in a troubled, or not so troubled (someone other than WD)HDD company. Now I don't necessarily approve of the "balance sheet battle", but like Todd Bakar asked Luczo, "Just how long can these weak companies (he referred to Applied Magnetics) continue to attract investment capital?" Like Bakar, I'm frustrated with the situation since the entire industry, top on down, is negatively impacted and it doesn't appear that "normal free market" forces are enough to correct it. I agree with you that the picture as we see it today cannot remain unchanged and I further agree that, while I'm not quite sure the details of the pending changes, come January the picture with take on a much more positive view. Geez, I hope so. Regards, LT