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To: stock bull who wrote (3901)	10/23/1997 1:54:00 PM
From: Sam	Read Replies (6) \| Respond to of 7841

I disagree with that analysis--it is pretty short sighted, IMO. In the ripeness of time, cheap PCs will be good for drive makers. True the drives that come with them are, well, cheap! And have lower margins. But these will, I think, mostly expand the market, not shrink it. The low capacity drives will soon enough prove inadequate for most people as they add more software, games, etc. Then they will upgrade their drives and their memory. Or they will buy a newer system with a bigger drive. As people become more comfortable with computers, they will want a more powerful one. The 1 gig or so drives that come with these sub 1000 PCs will not be adequate for much next year, and certainly not the year after. As remarkable a statement as that is for anyone who was buying PCs 2 or 3 years ago.

To: stock bull who wrote (3901)	10/23/1997 3:44:00 PM
From: Jolo	Read Replies (1) \| Respond to of 7841

Well isn't DD a low margin business to begin with? I mean for years beside SEG almost all the revenues from WDC and QNTM were from the lower end side of the DD market. Even SEG got into that business with their Conner acquistation. So I would assume more PCs=more DD sales=more revenues=more profits. One more note, I am seeing very good support on SEG from the $30 range, any comments?

To: stock bull who wrote (3901)	10/23/1997 6:22:00 PM
From: LK2	Read Replies (1) \| Respond to of 7841

Stock Bull, if low margins are bad for disk drive makers (QNTM, SEG, WDC), then why are they good for CPQ and COMS? Have you asked yourself that question? Why should CPQ and COMS benefit by selling lower-margin products (lower than their average-margined products), while QNTM, SEG, and WDC will be hurt by selling lower-margin products? CPQ and COMS are not low-margin producers. In the past they have made their money (and profits) from medium-to-high margin products. Do you see now why I object to the WSJ article? My objection is that the article says these companies will benefit---- CPQ COMS these companies will lose------- SEG WDC but I don't find the reasoning/evidence/proof for the conclusions. Either the article left out some points, or the article is reporting guesses on who will benefit/lose, and the guesses are not supported by the facts presented in the article. Regards, -LK