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

To: Sam Citron who wrote (10894)	2/26/2004 4:47:48 PM
From: Sam Citron	Read Replies (1) \| Respond to of 11057

Another day of outsized gains in disk drive companies (MXO +5%, WDC +4%, STX +2.5%) far outperforming the 0.3% gain in tech proxy QQQ. These gains perfectly rational on the heels of MXO announcement of low inventories and 6% price increases that look like they are sticking this time around. Paul Tufano even predicted another round of price increases in the recent GS CC, and I wouldn't doubt it. So what's not to like in an industry that is priced for disaster, price war, and cyclicality. Reminds me of the home builder industry. It's unfortunate that there are no LEAPS available on any of the HDDs. If there were, I would be selling distant at the money puts and buying calls at even money for a juicy synthetic long while tying up minimal capital.