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

To: Yogi - Paul who wrote (8776)	9/29/2000 1:50:18 PM
From: Sam Citron	Read Replies (1) \| Respond to of 9256

Paul, Just to put his remarks in perspective, Chase-HQ analyst upgraded both MXTR and HDD today. Maxtor Corporation (MXTR) $8.88 - $655MM mkt cap: While C3Q-00 Presents Challenges, C4Q-00 Looks Stronger: Upgrading to BUY with a $12 price target. CY00: UNCHANGED $2.7B/0.20 CY01: UNCHANGED $2.9B/0.35 We expect general softness in desktop demand, C2Q inventory builds, and lower pricing to create a challenging scenario for Maxtor to meet C3Q-00 revenue estimates. However, semiconductor suppliers to the drive industry have either underinvested in capacity, have yield issues, or are walking away from business to supply alternate industries. We now believe the near simultaneous 20GB/platter ramp will produce a run on the same components, including recording heads, creating a shortage throughout the industry. As a result, pricing should-at worst-stabilize and could-at best-increase, driving upside as PC demand rebounds in the strongest seasonal quarter. Additionally, we believe these shortages could accelerate the long-term industry trend towards consolidation as larger vendor's should be able to garner greater component supply. * Quantum HDD Group (HDD) $9.56 - $816MM mkt cap: While C3Q-00 Presents Challenges, C4Q-00 Looks Stronger: Upgrading to BUY MarFY01: INCREASING EPS $3.4B/(0.15) -> $3.4B/0.08 We expect general softness in desktop demand, C2Q inventory builds, and lower pricing to create a challenging scenario for Quantum to meet C3Q-00 revenue estimates. However, semiconductor suppliers to the drive industry have either underinvested in capacity, have yield issues, or are walking away from business to supply alternate industries. We now believe the near simultaneous 20GB/platter ramp will produce a run on the same components, including recording heads, creating a shortage throughout the industry. As a result, pricing should-at worst-stabilize and could-at best-increase, driving upside as PC demand rebounds in the strongest seasonal quarter. Additionally, we believe these shortages could accelerate the long-term industry trend towards consolidation as larger vendor's should be able to garner greater component supply. We are upgrading Quantum to BUY from Market Perform, with a $13 six-month price target based upon a 0.4x multiple on CY01 sales, which represents 36% appreciation potential. cnetinvestor.com disclosure: I'm long HDD, MXTR, RDRT

To: Yogi - Paul who wrote (8776)	9/29/2000 9:55:02 PM
From: Gus	Respond to of 9256

Now, why do I think RDRT may have learned a thing or two about organizing bear raids from TYCO? <g> I gotta tell you. I had long expected RDRT to be spitting its intestines out by now. Will wonders never cease? Read-Rite Corporation to Exercise the Automatic Conversion Right for Its 10% Convertible Subordinated Notes Due September 2004 FREMONT, Calif., Sep 29, 2000 /PRNewswire via COMTEX/ -- Read-Rite Corporation today announced its decision to exercise the automatic conversion right in connection with its outstanding 10% Convertible Subordinated Notes Due September 2004. The trustee will be delivering formal notification to the bondholders next week including information regarding the date of the automatic conversion, which we anticipate will be no later than October 19, 2000. Read-Rite's debt position will be reduced by $202.4 million, as compared to the published June quarter's balance sheet, with a corresponding increase to shareholders equity when the conversion is completed. The company also noted that there will be a charge of approximately $29 million in the current quarter for the interest premium Read-Rite will incur due to the conversion. This conversion will have a positive impact of $80 million over the next four fiscal years on the financial results of the company. The company will have more comments regarding the bond conversion when it announces its financial results for Fiscal 2000 on November 1, 2000 after the close of the market.......... siliconinvestor.com