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

To: Mark Madden who wrote (7848)	1/24/2000 11:19:00 AM
From: Sam	Respond to of 9256

Mark, <<Most of the price drops occurred in the Maxtor and Quantum drives. Hopefully it is just a couple of companies jockeying for position.>> It isn't a coincidence that Maxtor and Quantum are the aerial density leaders. This isn't a "price war, it's a cost war". Luzco needs to remember that at the enterprise level as well as at the desktop level. I listened to the HDD and DSS CCs over the weekend. Here we have the ironic case of DSS pulling HDD down. Almost every questioner in the HDD call congratulated HDD for a great quarter. But Brown shot himself (and all of us HDD stockholders) in the foot when he said that they would be "opportunistic" buyers of HDD stock, which meant in his opinion not at 10 (they bought 3 million shares at 6 last Q). "We wouldn't be buyers here", he said, emphasizing "we", as though he meant well, you guys should, but we won't. IMVHO (in my VERY humble opinion), both stocks are undervalued here, victims of a loss of confidence in upper management and, in the case especially of HDD, a loss of confidence in the drive sector. I wasn't kidding when I suggested last week that WDC's stock might benefit if they got out drives altogether, and become a pure NAS play. It wouldn't be the first time that they reinvented themselves and got out of their main revenue generator. Of course, this time, they might not have the balance sheet to support such a move, not to mention the confidence of their bankers, which would be necessary of course. It is all very depressing for those of us who have supported these companies for years. A mite pissed off, in case you couldn't tell, Sam