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

To: Mark Madden who wrote (7836)	1/23/2000 12:24:00 PM
From: Z Analyzer	Read Replies (1) \| Respond to of 9256

Mark, Aren't these larger price drops than we've seen recently? -Z

To: Mark Madden who wrote (7836)	1/23/2000 2:21:00 PM
From: Sarmad Y. Hermiz	Read Replies (2) \| Respond to of 9256

>>We have yet to see the seasonal price drop that normally occurs at the end of the 4th calendar quarter. << Hi Mark. The reaction of DD stock prices so far implies that speculators are still betting on a non-recovery in the structure of the industry. Contrary to all logic, the short position in WDC has increased from 8.7 M shares to 10.5 M. from 12/14/99 to 1/14/00. According to Barrons. This means the rise in WDC stock from 3 to 6 did not cause any panic buying. Instead the short sellers are thumbing their nose at the hopeful buyers. Also the reversals in each of the DD stocks when they rise in reaction to reduced losses or increased profits, then are swatted down in a wave of profit taking and short selling. I guess it is still a long road ahead. Is there any way to tell if price stability at the current price level is sufficient for increasing profits ? SEG and HDD are already profitable. MXTR is very close. WDC is still $60 Million away. That is approx $8 per drive. Is that practical for WDC to reduce cost by that much ? Or are they doomed without a price increase ? It seems the shorts are betting on the doom direction. -Sarmad

To: Mark Madden who wrote (7836)	1/28/2000 9:14:00 AM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 9256

>>We have yet to see the seasonal price drop that normally occurs at the end of the 4th calendar quarter << Mark, Well now the DD companies have released their Q reports. All better than expected. It seems to me disk prices have edged a bit higher last week, especially WD drives. This Q will be better. Higher volume, higher composition of lower cost products, and flat to higher prices. Then there are those millions of short shares to cover at higher prices. I think the DD stocks will appreciate at least 50% during this Q. Sarmad