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Technology Stocks : DSS: DLT finally open for trading -- Ignore unavailable to you. Want to Upgrade?

To: dr_elis who wrote (453)	4/30/2003 11:05:16 PM
From: Sam	Respond to of 488

Yes, I saw it. It isn't totally nonsense, but he only focuses on negatives and ignores any positives. He also claims knowledge of some things which most of us can't really know. For example, the Benchmark 160 is a disaster at OEMs. I don't know that this isn't so, but I don't know that it is so either. benchmark has a very reputation. I will try to check with friends to see what they know, but won't have a chance to do it for a couple of weeks. He also claims that STK has a "very good case" on patent infringement, but the fact is that historically, STK has been very weak on such things, and patent suits are never slam dunk things, even when cases are strong (or weak, for that matter!). If he is right that LTO will continue to "kick Quantum's butt", well, OK, then DSS has a problem. But DSS gained share in the Dec quarter, if the SDLT6000 does what DSS management claims, then DSS should gain more share either in the Sept or the Dec quarter of next year and continue that momentum. He presents it as indisputable fact, I think the jury is still out. He also claims that the 6000 will be late fall at best. Where does he get this from? He says the Benchmark 80 is "merely replacing some DLT business,but at a much lower price", well, DSS said this is true, but margins are better, volumes are up, and its a strong product in its category. They are still trying to get the product mix right--they're still stronger having a strong low end product than simply ceding that territory to someone else. He fails to mention that automation products are strong and have grown faster than the market. His bit on HP/CPQ is mildly worrisome--but one still wonders if LTO is really in their or STX's plans for the long term. I don't see it as a core business for them, especially if the 6000 is on time and Belluzzo makes good on his presumption about it gaining them share. A couple of weak quarters, and HPQ leaves the business. They have enough other businesses--why mess around with tape? Especially if, as this poster claims, tape is a "dying" or "diminishing" business? People who have predicted DSS's demise in the past have always cited both LTO and that tape is dying--yet they don't confront the question of, if tape is dying, why in the world did HPQ, STX and IBM start LTO to begin with? They must have seen something more permanent in the business. The Yahoo poster is, IMHO, just spreading worst case rumors--he has a burr in his butt. All IMHO of course.

To: dr_elis who wrote (453)	5/13/2003 1:52:41 PM
From: Sam	Read Replies (1) \| Respond to of 488

Well, Barbara Nelson must have said something good at the Piper Jaffrey conference, as the stock is over 4 again on volume over a million shares already. A close over 4 would be very bullish. The only things I can think of that might legitimately do this would have been something good about either DX30/DX100 or SDLT600. Or both. The OBV on this stock has been trending nicely upwards for months now, hopefully foreshadowing good news on both fronts. I should have added in my last post that your negative Yahoo poster was essentially saying, well if everything goes wrong for DSS, then they are up the creek. But one could also say, if everything goes right for DSS over the next year (e.g., their DX sales take off, SDLT600 is as strong a pdt as the 320 was, and the Benchmark pdts keep taking share, plus there are still a lot of EXBT accounts out there which will be/are in the process of upgrading now, so there is share to be taken both in the low and the mid-range, not to mention the fact that the mid-range is now strong enough to encroach on high end sales), it is a steal at these levels, will be at least a three bagger from here, and likely more than that. All IMHO, of course. Sam