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Technology Stocks : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (10689)	7/27/2003 9:45:04 PM
From: Sam	Respond to of 11057

Sam, There is always risk, of course. The risk with heads is enormous. With only two merchant suppliers, the risk for MXO certainly grows. On the other hand, STX and WDC (assuming they get RDRT's business going) also have risk--if they can't make the jump to the next level at more or less the same time that SAE and ALPS do, then they fall behind too, AND they still have their fixed costs of the head operation to deal with. In house supply is great when its great, and its terrible when its not. If you get my drift. Since I was a long time QNTM holder in the past, I went through their agony with DEC's head operation. I also owned STX when it was SEG and they had "head" problems as well (in more ways than one!). RDRT has always been miserably managed. Whether WDC can turn that around is the question. No one has managed to hit all the transition points in drives and heads with any real consistency in this business. Perhaps its better to focus on one aspect of the business and leave the other aspects to companies that specialize in it. When its your whole business, and you're totally focussed on that one thing, it tends to sharpen the mind. Of course, STX says not. They have always said vertical integration is the way to go. We'll see if WDC can manage it. I think actually this might be good for MXO, as they may get some preferred pricing since their volumes will larger with the merchants now. But that too is just speculation.

To: Sam Citron who wrote (10689)	7/29/2003 12:24:24 PM
From: Return to Sender	Read Replies (2) \| Respond to of 11057

From a technical perspective WDC has undergone an extreme sell off and is now apparently consolidating in my opinion. The longest sustained downward move this stock has made in the last six months has been 5 days in a row. We are on day 4 now of an extreme sell off. I would expect the stock to be higher later in the week. Perhaps much higher next week as there is no real resistance above 9.79 until around 10.80: stockcharts.com[h,a]daclyyay[pb20!b50!b200!a10.80!c20!c50!i!d20,2!f][vc60][iUb14!La12,26,9!Lg!Li10,10!Lh5,5!Lp14,3,3!Ll14]&pref=G 9.50 looks like strong support to me. Time will tell. This is all of course speculation on my part. RtS