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

To: Stitch who wrote (7020)	8/29/1999 3:49:00 PM
From: Yogi - Paul	Read Replies (2) \| Respond to of 9256

Stitch, Alright-- I've got Gustav Holst's "The Planets" and specifically "Mars, Bringer of War" cued up and playing on the stereo. (Guys, don't play this in conjunction with Wagner-- next thing you know you'll be invading Poland, or something). Still can't get overly excited by Seagate. << Seagate will close out this quarter much better then originally anticipated. I understand some distributors are howling because they can't get enough. >> Yes, yes-- very impressive-- but at a profitable price point? Are they declaring war or striving for profitability? How about time to market? How about "next generation" drives? What do you hear about their prospects 2-5 years down the line, or are they totally in a reactive stage instead of a proactive one? Does current Seagate management have "Vision"? Paul

To: Stitch who wrote (7020)	8/29/1999 9:53:00 PM
From: Kevin Linder	Respond to of 9256

I wish I could share Stitch's enthusiasm for the sector and even though his comments are peppered with warnings I still remember several times the last two years that this sector looked ripe for a recovery - only to fall apart in a massive disaster. There could be shortages in low end/low price drives. The HDD companies should have had enough time to "flush" out inventories from earlier in the year - now, it may be a race to produce the single platter drives that seem to be the rage. WDC and MXTR seem to be having problems and the independent parts makers RDRT; APM and KMAG seem to be having major financial problems because of the product focus change. Major financial institutions will remember the pain and struggle of the last two years. All of the companies had multiple downside earnings surprises and major losses - I doubt that the major funds will be as big of supporters of the companies coming out of the slump as they were going into the slump - remember the stock analysts high praises for the drive companies? I think that this may present a short term buying opportunity, but my thoughts are that it may be best to wait and see what happens. Long term, I feel pretty comfortable with this sector and demand for storage. It seems early for a sell and early for a buy. I wish I had better thoughts of this sector - I do like the way that SEG's holdings continue to appreciate and think that may contribute to a rise in SEG stock prices. However, it may be possible that SEG's drive operations may be valued at a negative value by the Street unless and until SEG management shows that a turnaround of the drive operations can occur and profitability can occur. Kevin Linder