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Technology Stocks : Quantum Disk Drives (HDD) -- Ignore unavailable to you. Want to Upgrade?

To: nonzeroa who wrote (135)	7/27/2000 9:51:54 AM
From: Thomas DeGagne	Respond to of 179

Thank you for your summary of the conference call. I now understand the substantial drop in price of both HDD and MXTR. This statement says it all: "HDD saw a SUBSTANTIAL decrease in desktop pricing at the end of the quarter and expects it to continue. Aggressive desktop price reductions combined with the enterprise component shortage cause the company to expect a FYQ2 LOSS." Were is the bright side in the CC? If supply of Entrerprise drives is constrained at competitors as well then unit price should rise leading to higher margins. This should help all suppliers. If supply is not constrained at competitors then they will take market share from HDD. The under supply of desktop PCs will accumulate demand for later this year. Once CPUs are available sales will rise rapidly. Demand for drives is postponed, not lost, as there is no substitute product available. This appears to be a buying opportunity for DD stocks.

To: nonzeroa who wrote (135)	7/27/2000 5:42:12 PM
From: Mark Adams	Read Replies (1) \| Respond to of 179

Thanks for your notes. You got some things I was just too plain tired to put down. I think SSB analyst was pretty negative- he was the last analyst on the call and wanted to hear a plan to deal with declining gross margin. He didn't hear the answers he was looking for, hence the downgrade. That's what analysts are for though. I tripled my position following the downdraft. I think overall the call overall quite positive. I would not be surprised to see a breakeven next quarter, as a slightly positive surprise.