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

To: Stitch who wrote (8088)	3/10/2000 11:35:00 PM
From: Tom Simpson	Read Replies (1) \| Respond to of 9256

<<For Tom and Yogi I would say it was a bit too early to divest Seagate>> And u b absolutely rite....I sold Cypress in high twenties, I started selling off PBTCX at 30, 80% sold by 65, last 10% here at 116. And I bailed out of Cisco long ago when it hit the astronomical PE of 90. So far I am infallible....every single thing I've sold is higher, yes mostly much higher :o) Its interesting actually. I just bailed out of SEG precisely because VRTS is such a huge chunk of its valuation, even as discounted for taxes. Getting the drive business for free is great only if you want to invest in VRTS, and I don't. Quantum looks to be a bit more predictable play on DD industry recovery potential at this point. But then I've been uniformly wrong so far, leaving bundles on the table for the much smarter folk :o). I'll be very very interested in any numbers you come up with Stitch. I'm still looking for some actual sign that the down trend in avg platters per drive is really going to change its slope anytime this year. Best Regards.....Tom

To: Stitch who wrote (8088)	3/11/2000 7:06:00 PM
From: Gus	Read Replies (1) \| Respond to of 9256

Thanks RTS, Dick. Stitch, we may have to seriously rethink this summer slowdown scenario this year given the way that wireless is soaking up available supply in more and more parts of the technology food chain. Sandisk (flash memory) is fully booked till the end of June. The analog folks (TXN, NSM, ADI, LSI, etc) are all reporting robust order books. Here's yet another report: messages.yahoo.com At any rate, after the worst downturn in the history of the disk drive industry, it's good to see SEG smash through its all-time high with only its fourth 4+M trading day year to date. Now if only the rest of the industry would behave and follow the networked-storage script laid out by SEG -- real men have fabs so forget about contesting disk drive leadership; revenue growth and earnings will have to come from the emerging SAN/NAS and home networking markets -- the industry would be in a better position to argue for much higher multiples all around. <g> NTAP's triple-digit growth rates off a low revenue base has earned it a market cap of $36B which is more than the entire disk drive supply chain COMBINED and that should be a clarion call of sorts for these price cowboys. Notwithstanding the fact that more and more undisciplined investors are willing to sacrifice the law of large numbers as it applies to market cap at the altar of MoMo, this market valuation inefficiency is an amazing fact especially since NAS technology is the most logical evolutionary step for a disk drive company.

To: Stitch who wrote (8088)	3/13/2000 8:53:00 PM
From: Sam	Read Replies (2) \| Respond to of 9256

Stitch, Tom, Z, Any comment on this Magnecomp/SAE JV? Post from Yahoo: Magnecomp with TDK ? Could be big. by: mulabandha 3/13/00 4:53 pm Msg: 2556 of 2557 MAGNECOMP INTERNATIONAL LIMITED MEMORANDUM OF UNDERSTANDING ( ' MOU ' ) The Board of Directors of Magnecomp International Limited (the Company) is pleased to announce that the Company has on 24 February 2000 entered into a Memorandum of Understanding with SAE Magnetics (HK) Ltd, ("SAE") a wholly owned subsidiary of TDK Corporation ("TDK") of Japan to establish a joint venture company ("JV") in Hong Kong. The objective of the JV is to develop value added suspension assemblies. Value added suspensions involve the addition of electronic components onto conventional suspensions to form electro-mechanical devices. This allows more efficient and cost effective data storage on magnetic disks in disk drives. The JV will be housed in the new plant facilities owned by Magnecomp Technology Ltd. in Changan, China. The JV company will be 51 % owned by the Magnecomp Group and 49 % owned by SAE/TDK.SAE is one of the largest independent Original Equipment Manufacturers ("OEM") of Head Gimbals Assemblies ("HGA") and Head Stack Assemblies ("HSA") in the world. Its holding company, TDK, is one of the world's largest and most advanced magnetic head manufacturers with net assets in excess of US $ 5 billion as at 31 March 1999.Through the JV, the Magnecomp Group and SAE will be able to combine their respective strengths in suspension assembly and HGA/HSA technology. This will allow joint development and production of a larger volume of value added suspension assemblies at a more competitive price to better serve the needs of SAE and disk drive customers. SAE is currently one of the Group's major customers. By entering into a closer long term partnership with SAE, the Magnecomp Group should achieve a higher volume of sales at a lower capital cost, be better positioned with customers relative to advanced products, and reduce process steps allowing a lower cost structure.It is intended that SAE will provide the process development technology and resources to the JV thereby facilitating the development and qualifying process. This will significantly reduce the time and resources required of the Magnecomp Group if it has to pursue the development and production on its own.The directors expect the proposed JV to contribute positively to the Magnecomp Group. For the current financial year, however, the JV is not expected to have any material impact on the earnings per share and the net tangible assets per share of the Company nor the Group.None of the directors or substantial shareholders has any interest, direct or indirect, in the SAE or TDK.The Company will make further appropriate announcements at such times, if and when the Company enters into definitive JV agreement.