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

To: DJBEINO who wrote (3989)	11/3/1997 9:15:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 7841

Seagate Again Sets the Record for the World's Highest-Capacity Winchester Disc Drive: The Elite 47 biz.yahoo.com

To: DJBEINO who wrote (3989)	11/3/1997 11:51:00 AM
From: Joe E.	Respond to of 7841

Re your LA Times link, it also says: "More important, Asian demand for computers, telecommunications equipment and the machinery to make semiconductors and other electronic goods is likely to increase in the years just ahead. That's because the Asian economies that grew up in the last decade on cheap labor and simple manufacturing now need to upgrade their industry and their products." This seems wrong to me, at least as a point to emphasize. The devaluation preserves the "cheap labor" advantage of these countries while reducing their ability to make the kinds of big-dollar investments needed to raise technological capabilities. As a long term statement of likely trends it is OK, but the author implies that this is the result of the devaluation. That, IMO, is backwards. The point you quoted is correct, manufacturers in these countries will benefit, and that most definitely is true for Seagate. If this benefit will offset the Asian demand decline is uncertain. IMO the cost savings will be a long lasting benefit. The demand hit will be fast and painful, and there will probably be more writedowns in assets and hedging contracts. Much of the bad stuff will be in the next quarter's report. The good stuff will stretch out over the next several years. All just MO.