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

To: Sarmad Y. Hermiz who wrote (7839)	1/23/2000 7:18:00 PM
From: T Bowl	Read Replies (1) \| Respond to of 9256

Sarmad - <,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>> On the contrary, my guess is that the pop above $5 has given lots of knowledgeable people the chance to make some money on their way down... The extra shorts might be on reason we've seen it keep dipping back below $5 the last few weeks. My guess is that the panic won't happen unless it breaks well above that. Ohh, if we could just see the same pop above $5 for KMAG! todd

To: Sarmad Y. Hermiz who wrote (7839)	1/24/2000 1:15:00 AM
From: Mark Madden	Respond to of 9256

<Is there any way to tell if price stability at the current price level is sufficient for increasing profits ?> Sarmad - IMHO profits will increase if pricing drops less than 2.5% per month for the quarter, quantities do not decrease and efficiencies in production continue. One big efficiency may be the shift of product mix to high capacity platters. We can monitor pricing but we do not have a good way to measure quantities or efficiencies. I think the big question this quarter is how much demand (quantity) will we have with Y2K fears over, Windows 2000 being introduced and new consumer products developing. Typically the demand drops off after the December quarter but maybe it will be different this time. Perhaps the short sellers are looking at the seasonal trend from last year. Regards, Mark