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

To: Sam who wrote (7332)	11/10/1999 1:41:00 PM
From: Robert Douglas	Read Replies (1) \| Respond to of 9256

Sam, <<T. Yamamoto covers Fujitsu and estimates that Fujitsu's operating profit for its HDD business will decline to (Y20B) in FY1999 from Y10B in FY1998. The desktop HDD business is estimated to be approximately 60-70% of Fujitsu's total HDD units and approximately 50% of the company's total HDD revenues.>> The convention is that if a number is in parentheses that it is negative. So negative 20 is less than positive 10. -Robert

To: Sam who wrote (7332)	11/10/1999 3:23:00 PM
From: Yogi - Paul	Read Replies (1) \| Respond to of 9256

Sam, <<My favorite speculation right now has Fujitsu and WDC exiting the desktop, and Seagate buying Maxtor for $2-2.5 billion after they (SEG) get their stock price up to the 50s or 60s. This would help the supply/demand balance immeasurably, and would restore some health to the sector ...>> Looked at another way, aren't the Yamamoto comments something of a threat to Seagate? Along the lines of--- "If you continue to slash prices at desktop, we will ramp up capacity and slash prices at enterprise? Pointing out the constraint on capacity makes me curious about Fujitsu's motives. If Seagate is, in fact, behind the curve on GMR and if Readrite is, in fact, ahead of the curve and Fujitsu is constrained by supply of heads--- would Fujitsu be interested in capturing RDRTs head supply and denying same to Seagate if Seagate doesn't lay off on desktop pricing? I'm just free-associating here but completely suspicious of Fujitsu's motivations or, perhaps, Munson's interpretations. I don't know--- educate me, Paul