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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Gus who wrote (15277)	9/15/2003 4:09:10 PM
From: Sam Citron	Read Replies (1) \| Respond to of 17183

As your article pointed out, the 2.5" HDD sector is on the verge of a major American assault, and who can blame the Americans, since lots of laptops are being sold these days as desktop replacements. What my strategy cap worries about is how Hitachi and Toshiba are going to respond to this incursion. Can they be expected to sit back and watch the Big 3 erode their market dominance in notebook drives? Will it set off a price war in the 2.5" sector? Will Japan send a shot over the bow to signal to the Americans that if they bloody up the 2.5" market, they can expect some retaliation in the 3.5" market? If I were plotting strategy for Hitachi or Toshiba I would certainly be thinking about that juicy CE segment of the 3.5" market. I might want to send the Americans a lesson that if they invade my turf, then perhaps I might retaliate by invading theirs. In short, I have to wonder how long all this "responsible disk drive maker behavior" can be expected to last. Maybe it is close to profit-taking time on those options. How much longer do you think the show can go on?

To: Gus who wrote (15277)	9/16/2003 2:33:39 AM
From: Sam Citron	Read Replies (2) \| Respond to of 17183

Gus, Do you favor the small cap segment of the enterprise storage market because: (1) its customers tend to be smaller enterprises as well, and the outlook for spending among these smaller enterprises (20 TB or less) remains more robust than larger customers [Lehman Bros. 3rd Storage Survey 8.13.03]; (2) the small cap sector as a whole has been outperforming [e.g., Russell 2000 median market cap 351.8M +29.08% one yr annualized return v. Russell 1000 median market cap 3.1B +12.86% one yr annualized return v. Russell 3000 median market cap 622.3M +13.93 one yr annualized annual return russell.com, russell.com, russell.com]; or (3) for some other reason? Sam