Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Think4Yourself who wrote (1747)	12/11/1997 1:02:00 PM
From: Z Analyzer	Read Replies (1) \| Respond to of 9256

<<They may be irrational but they are not stupid. They will try to protect a 1.6 BILLION fab investment long before they will worry about a 20-40 Million DD factory. >> The question is what would it take for them to pull the plug. Thier current production surely must be generating positve gross margin so they have every incentive to maximize current ouput (assuming they are desperate and do not view their own production as seriously altering the market). They have the fixed facility investment. One question is how much of the next generation investment has been made and is it too late to pull the plug esp considering that that would involve layoffs. And Maxtor's past investment including losses are huge perhaps making an exit decision less attractive.