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

To: Sam Citron who wrote (10713)	8/26/2003 11:51:07 AM
From: Sam	Read Replies (1) \| Respond to of 11057

I agree with you, Sam. The head business is a difficult one, and can be very expensive. I think that that is the reason for the selling of WDC lately. The uncertainties and pitfalls inherent in the new business they are in.

To: Sam Citron who wrote (10713)	8/26/2003 12:27:33 PM
From: Gottfried	Read Replies (1) \| Respond to of 11057

Sam, check with Gus on the EMC thread. PS: I read 55% of DDs are used in PCs. Gottfried

To: Sam Citron who wrote (10713)	8/26/2003 1:25:25 PM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 11057

>> Can commodity margins generate enough profits to pay for this research? The commodity margins are the result of companies like IBM willing to endure years (and $billions) in losses to try to stay in the business. When IBM threw in the towel, WD's cash profits went up from zero to $300m/year. A year ago, Hitachi took up the torch of losing $100's of millions per year to make desk-top drives. Last year it was $400m. They may also decide that it isn't their strong suit, and exit the business, like Fugitsu and MKE did a couple years ago. I think then WD's profits will go to $400m/year. A disk drive is not at all a commodity. Neither in its design, nor in its manufacturing. The margins have been low because giant companies were willing to bleed in order to have a chance at monopolizing the business. Their blood is running dry about right now.