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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: dougjn who wrote (1353)	10/26/1997 2:51:00 AM
From: LK2	Read Replies (1) \| Respond to of 9256

Doug, the current issue of Barron's (Oct 27, 97) covers your arguments very thoroughly. Anyone investing in PC related stocks should read this issue for a bearish argument on the industry/sector. To repeat some of the highlights: Page 6: East Asia accounts for 29% of US exports (because of the currency problems in East Asia, this could translate into lower revenues and earnings for US companies). Page 26: A hedge fund that pans DELL and CPQ because >PC unit growth is slowing and average sales price falling.< Page 30: A different hedge fund that gives a much more complete argument, with details, why PC (and component) stocks should be avoided. This is the article that really counts, and that should be read by anyone interested in the PC industry/sector. 1. The PC market is saturated, so unit growth is slowing. 2. The average selling price is dropping. 1. The sub-$1000 PC for the consumer market has had explosive sales growth. 2. Now the business market could be the next area where the sub-$1000 PC growth expands. There are a lot of details/arguments given. Whether you agree with the arguments or not is up to you, but anyone invested in the sector should read the article. -LK