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Technology Stocks : Seagate Technology -- Ignore unavailable to you. Want to Upgrade?

To: DJ Clancey who wrote (3906)	10/23/1997 5:49:00 PM
From: LK2	Read Replies (1) \| Respond to of 7841

>>Can SEG be an efficient producer?<< That's one of the best ways to value SEG, QNTM, WDC, etc.... Same issue, slightly different aspect..... The WSJ article on cheap PCs said CPQ will benefit, COMS will benefit, and SEG and WDC will be hurt. But the WSJ article gives no reasons why COMS will benefit and SEG and WDC will be hurt. CPQ is selling a low-margin PC. That hurts margins versus their normal margins. COMS is selling a part used in a low-margin product. That should hurt COMS margins versus their normal margins. So why are CPQ and COMS going to benefit from lower margin products, while SEG and WDC are going to be hurt from lower margin products? The WSJ article gives no reasons or support for the analysis/prediction/forecast/whatever that CPQ and COMS benefit while SEG and WDC lose. The analysis is guesswork, but what I seriously object to is: the article appears to be an example of spin-control, where 'facts' are twisted or ignored to support conclusions. ------Leaving the WSJ article--------- As for the question of whether SEG (or QNTM, or WDC) will be an efficient producer, as well as the question of storage needs, see pathfinder.com@@nae6CQUAyCeLeA6C/fortune/1997/97... for a nice, simple article that shows how basic theory on storage needs and real life Wall Street (SEG and other disk drive stocks) can have a rocky marriage. Regards, -LK My thanks to DJBEINO for posting the link to the Fortune article.