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: Tom Simpson who wrote (9182)	12/10/2002 2:26:33 PM
From: Sam	Read Replies (2) \| Respond to of 9256

What you're missing is the perception that, after MXTR bought out HDD, MXO/HDD would lose share, likely to WDC. This perception has become reality. MXO also had some problems with its transition to 60 gig disks, now corrected. How much more share they will lose is anyone's guess. But WDC has been profitable for several quarters now, MXO has not. MXO's announcement yesterday affirmed that they too will now be profitable, at least on a pro forma basis. They still have some writeoffs left over from completing the merger. Will those be completed after the upcoming quarter? I haven't followed them closely enough lately to know, even though I still (!) have a little stock in them (I also had a little WDC, but sold it awhile ago). Not too coincidental that they have become profitable just in time for SEG (what is their new symbol? I forget) to go public. Should grease the sale a little. I think the pricing environment will remain favorable for awhile now, as SEG insiders have to wait 6 months for their lockup to expire before they can dump their stock for even more outrageous profits.

To: Tom Simpson who wrote (9182)	12/10/2002 5:08:14 PM
From: Gus	Respond to of 9256

Try not to get faked out of what seems to be an inevitable rotation of institutional money from the storage networking sector to the disk drive sector during the next 18-36 months. Would you believe that at their respective CY2000 peaks, Brocade had a market cap of nearly $30B and McData had a market cap of nearly $15B despite the fact that their market won't even be an $8B market in 2005? If the $20B a year disk drive industry can convince people that it has finally changed then look out because this sector will have growth-oriented institutions mingling with the value-oriented institutions that currently dominate the trading of these stocks.