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

To: Sarmad Y. Hermiz who wrote (10925)	5/27/2004 9:40:17 AM
From: Sam	Respond to of 11057

Sarmad, Yes, I saw that article on TDK. There are two ways of reading it though--if there really is an inventory problem at distributors or at OEMs, but head sales are holding up and production of more drives continues, then the inventory problem is exacerbated. Someone has to dump drives then or eat them entirely. Good for the Dells and HPQs of the world but not so good for the WDCs, MXOs and STXs. Of course, the problem gets pretty complicated--it really depends on which drives are having problems. Drives in sweet spot of 80 and 120 gigs? 2.5 inch drives? I don't know.

To: Sarmad Y. Hermiz who wrote (10925)	6/2/2004 9:41:42 AM
From: Sam Citron	Read Replies (2) \| Respond to of 11057

8:57AM Merrill Lynch cuts estimates for disk drive stocks : Merrill Lynch cuts ests for STX, MXO, WDC, and HTCH, and says it's still too early to invest in the U.S.-based hard drive stocks. Firm cites the following factors: 1) recent T.S.R. (hard drive supplier) data, which suggests downside to their prior ests; 2) distributor checks, which suggest that shipments would be down sequentially in CQ2; 3) their belief that key supplier HTCH has not reached an inflection point in its suspension assembly biz; 4) their Taiwan team's ests that PC motherboard shipments will be down 11% sequentially in CQ2; and 5) slowing growth in Europe due to a declining euro and weakness in continental Europe. www.briefing.com