Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mark Oliver who wrote (8529)	8/7/2000 6:56:07 PM
From: Stitch	Read Replies (2) \| Respond to of 9256

Mark, RDRT has been trading up on heavy rumors of their quiet (perhaps not so quiet) efforts to diversify into another business. The rumor is that they are developing the processes to make "thingamajigs" for communications equipment. I can't seem to find out what these things are, or how RDRT is particularly suited for it, but there appears to be something going on their. Aparently RDRT's processes are suited to making routers and hubs but again, I know little about this. The partner most often discussed is CSCO so perhaps it is a big deal. In addition RDRT seems well on their way to reorgaizing their debt and have made some improvements to their customer mix last Q. They have also effectively started to unwind themselves from the largely unprofitable business of making head stacks, farming it out instead to companys like Kaifa and Tandon. The former operates in China while the latter operates in India. HSA assembly is still labor intensive and favors these locations due to the low cost labor pool. This will reduce overall revenues somewhat but should increase GM for RDRT. While we still have the overall trend of reduced component counts (due to much higher areal densities) RDRT is seen as improving their business model as a result of the aforementioned items. This could be a turn-around story so it is attracting the bottom fishers IMHO. I almost hate to confess that I took a small flyer at it a few weeks ago. But I would have to call it "roullette money". Now I am waiting to see what develops over the near term. I do not expect this will be a long term holding unless we see some announcement that RDRT has effectively diversified into communications in a partenership with someone like a CSCO. If that happens it could be mercurial. Best, Stitch