Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mark Madden who wrote (7235)	10/20/1999 11:27:00 AM
From: Sam	Respond to of 9256

Mark, We heard the HDD version too. One of the analysts actually asked Michael Brown why should one invest in this sector. He gave a slightly nervous(?) bemused(?) clearing of his throat, and said some of the same things that we say on this and other drive threads: that this environment is unsustainable, everyone is losing money and that can't continue indefinitely, the companies are for the most valued at extremely low levels, either at or near or even below net cash and other equity investment value, and the survivors should at some point rebound to give those who buy at these depressed levels a good rate of return in the ripeness of time. However, when asked which stub the stock buyback would focus on, he said that the great majority of the $435 million would buy back DSS stock, rather than HDD. They want to maintain a strong balance sheet for HDD, despite the fact that the market value of the stock is now only slightly above the cash holdings (the operations are still probably somewhat more expensive than SEG looked at in those terms, but cheaper than either WDC or MXTR). And we wonder why the drive boards are quiet?