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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (40475)	12/16/2003 10:02:52 AM
From: Logain Ablar	Respond to of 69284

Hi Harry: Storage software will do fine in the recovery. Hardware is a different issue, I expect hardware margins shrinkage to accellerate next year and at least at the momment don't see the increase in sales from the recovery offsetting the shrinkage - why I think elx, qlgc, mcdta, brcd have growth problems (they grow sales but don't grow profits as well). Your WDC is a case in point (but its always been a continuing problem with the hard drive makers, Segate, IBM etc). Remember IBM crushed EMC when it had its hard drive division sell its storage division hardware at below cost (of course IBM ran this one time charge when it spun the hardware off to the hitachi joint venture. So I expect EMC hardware to not do as badly but EMC is playing catch up as we see with its strategic move into storage software which has higher margins (as it adds value to hardware).