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Technology Stocks : FSII - The Worst is Over? -- Ignore unavailable to you. Want to Upgrade?

To: Junkyardawg who wrote (2599)	1/23/2000 3:05:00 PM
From: Andrew Vance	Respond to of 2754

WDC might be able to make a slight comeback in the lower end drive market for PCs, which is highly competitive. They are the #3 player here. The exit from the enterprise class of drive helps their competition enough that the competitors may be able to belly up to the bar and do a take out of WD down the road. As competitive as this market is getting, it would make a great deal of sense to take out WDC at these prices just to get rid of the competition, but more importantly, to a get a quality drive at a decent discount. Even though WDC is #3 in the sector, I always replace my hard drives with WD Caviar Drives. Brand recognition with certified high quality in my mind. The funny thing is that the drives I replace are not broken but are lower density or slower drives. I have yet to have a Caviar drive go bad. I have had 540MB, 1.2 GB, 1.6 GB, 6.4GB, all the way up to the 20+ GB drives (7200 RPM) without incident. Maybe I have been very lucky or maybe the drives are that good. I am not particularly fond of the DD sector as an investment opportunity, but if I were to invest in a stock, it would be WDC on the off chance (since it makes sense) it will be a takeover target. I would not bet the farm on the stock but at current prices, brokerages can now solicit investors and the institutions can get involved again. The $5 threshold is an important barrier which they just overcame. Andrew PS - I apologize for the lack of wordwrap on #2595. for the life if me I can't out how I accomplished that.