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

To: Gottfried who wrote (6815)	12/17/1997 4:46:00 PM
From: Rob S.	Read Replies (3) \| Respond to of 9124

I dropped by CompUSA, Circuit City, Costco, and EggHead Computer Center here in Seattle and found HDDs stacked high on pallets and selling for deaply discounted prices. There were stacks upon stacks of WDC drives cluttering up the stores. Seagate came in second, Maxtor third and Quantum inventories were fourth and much more modest. I also found some JTS and Fulitsu. The amount of inventory these guys are trying ot sell is very scary. I agree with Quantum management that this inventory glut and price war will take a couple of quarters to work out. IMO more disapointment is probably on the way before things get better. The "January effect" rally is unlikely to help the HDD mfgs. much because the Asian mfgs. are likely to continue to do some serious damage by dumping product. Of course WDC and other US suppliers are also to blame by adding to the price war. I think the sector will bottom out sometime next quarter.