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To: Skeeter Bug who wrote (120104)	3/11/2001 4:19:00 PM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 164687

>> have you checked the inventory levels of the companies you bet big on? SB, My largest bet is on Western Digital, Federal Mogul, Terex, and Maxtor. Yes I do follow them closely. For prices of their products, their costs, demand, and trends in their industries. Of course it is a gamble. So far, so good. But of course things can change in a hurry. Specificly regarding inventories, disk drive companies have approx 14 inventory turns per Q. So basically they have only one week's worth at a time. And so they can respond fast to changes in cost or demand.

To: Skeeter Bug who wrote (120104)	3/11/2001 4:52:58 PM
From: Glenn D. Rudolph	Respond to of 164687

http://www.siliconinvestor.com/headlines/financial/20010311/... sarmasd, a word to the wise... have you checked the inventory levels of the companies you bet big on? SB or anyone, I may have a misunderstanding of the current problems within the internet infrastructure and could use all the factual inforation I can get. It had been my belief that capacity has far exceede demamnd for server, possibly storage and other hardware needs of this type due to the availability of excess equipment after the demise of many of the dot coms. This explains the lack of demand for SUn's products, etc. On the other hand, I was under the believe there was/is still a lot of demand for bandwidth in both the backbone and the peripheral of the interent. The problem was the firms buying the equipment to increase the bandwidth no longer had the capital and available funding from the equity markets has dried up. This in turn explains the problems we see at Cisco, etc. Is the situation that the backbone of the interent has excess bandwith capacity and the peripheral does not? Or do neither have excess capacity? If there is excess capacity, then the lack of funds to bulid more is not the real issue. If there is still inadequate bandwidth, then lack of capital is the major problem. Any help is appreciated. Glenn