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

To: La Traguhs who wrote (8734)	9/21/2000 12:08:55 AM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 9256

LT, It seemed from the market action today, large blocks of HDD were selling and even larger blocks were buying WDC. Assuming that people who hold millions of shares actually know what they are doing, doesn't this mean that the "smart money" is betting that WDC is not as affected by the stinky water problem ? I think rdrt is WDC's major supplier, though I don't know. I guess this is one time that having inventory of drives will actually be a benefit. Are we to the post-digestion phase, yet ? It is possible that HDD will not be able to increase volume because they were having a shortage of a TI pre-amp or some such that would constrain their production for the quarter. So if Fugitsu is constrained also. IBM is stumbling. That leaves SEG in the enterprise. But it also benefits Maxtor with their multi-platter high capacity drives. Of course that assumes they can get heads. Again, the key here will be how much inventory is there. Didn't the Q2 CC's say that there was a bit too much inventory in the distribution channel ? So retail prices should stay firm, and we will know this when Mark shares his retail price survey in a few days. One more note. If you remember, the recovery in the DRAM stocks started when fabs were shaken in the Taiwan earthquake. Maybe the stinky water will have a similar effect. Fortunately this time without loss of life. Thanks for the info, Sarmad