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

To: Sarmad Y. Hermiz who wrote (8227)	4/8/2000 12:00:00 PM
From: Z Analyzer	Read Replies (1) \| Respond to of 9256

,<Regarding the accounting issue, I still don't understand how SEG could make a profit from a vertical process where each step is a loser (at least for the specialized public companies). >> Probably through higher capacity utilization, one big advantage SEG could have over the independents.

To: Sarmad Y. Hermiz who wrote (8227)	4/8/2000 6:07:00 PM
From: Mark Madden	Read Replies (1) \| Respond to of 9256

Sarmad - <I still don't understand how SEG could make a profit from a vertical process where each step is a loser> IMHO SEG desktop operation is subsidized by their enterprise business. Their enterprise drives do not have much more component costs but their selling price is way higher than a similar capacity desktop drive. Since SEG stopped breaking out sales of enterprise drives I do not know current figures but I guess their enterprise business is about 40% their total units. <Anyhow, SEG is in the past now> I haven't written SEG off yet. I can understand why people do not want to own the stock right now but my optimistic view sees a strong company with new management in about six months. Regards, Mark