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

To: Z Analyzer who wrote (1748)	12/11/1997 1:57:00 PM
From: Sam	Read Replies (1) \| Respond to of 9256

"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." Exactly my fear. And layoffs are anethema to them. They may reason that if the Big 3 are cutting back, then they will be able to make money on their drive plants, and maybe even pick up market share. And keep people employed. And not lose even more face by laying people off. A big game of chicken. What else do they have to lose? Frankly, it may be in the longer term interests of the Big Three to keep the pressure on for awhile. They do NOT want to lose OEM business to the Koreans or Japanese. OEM business is what pays the piper. Even if they have to suffer an extra couple of quarters, it may be worth it if they can get these people out of business. Radical thought, I know. And I don't like the suffering either. My profits for the year, so rosy just 2 short months ago, have essentially flown the coop. I think they are homing pigeons, but it still doesn't feel too good. Not in the red yet, but getting close. Sam