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

To: Stitch who wrote (8182)	3/28/2000 9:22:00 PM
From: Z Analyzer	Read Replies (1) \| Respond to of 9256

<<The war is not over, and by all accounts, it is spilling into the upstream space (NAS). Cost and cash (read "war chest") is still the name of the game, and will be especially the case as appliance storage starts to make a dent in the numbers. >> Do you see the NAS plays from ther DD companies making a serious dent in Network Appliance's markets or margins? The sky high valuation is in for a real cratering if that happens. Or is this just another war brewing among the usual suspects? -Z

To: Stitch who wrote (8182)	3/28/2000 11:57:00 PM
From: Sarmad Y. Hermiz	Respond to of 9256

>> Western Digital's transfer to Kuala Lumpur of all manufacturing ops is fait accompli and they are up to full measure. << Hi Stitch, As you can see, your posts on DD industry are read with the same scrutiny given to AG's comments on economy. Anyway could you please amplify the above snippet ? I have been trying to figure out why the estimate on WDC for this Q is a LOSS of 37c (upgraded from a loss of 50c). While all the other drive makers are expected to post profit. There are 3 possible explanations. 1- WDC operations are inefficient. They simply can't make a profit at current prices and costs. 2- The analysts are just plain wrong. 3- WDC's operations WERE inefficient last quarter because they were in the process of shifting production. The analysts are projecting from past data which is now obsolete. And the projected loss is based on old data, but the analysts are not awake enough to realize it. From your post, I wonder if #3 is the likely explanation, and therefor we can look for an upside surprise. I do appreciate your cautionary view, but I have to say that at this moment demand looks very strong for storage, especially server and network storage. Regards, -Sarmad