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

To: Z Analyzer who wrote (1891)	12/22/1997 4:52:00 AM
From: Frodo Baxter	Respond to of 9256

>heads Do you really want Quantum to feed from the same trough as Western Dig and Maxtor? Also, the disaster in heads is all off-balance sheets, which we should be very thankful for. >repurchase No way Jose! Quantum should hoard their cash or raise more by selling DLT. Pimping up their share price short-term does nothing to reduce their cost of capital. Instead, they should use their cash to focus on consolidating the industry, either by taking out competitors or by squeezing them until they cry uncle. >GMR at a level below where economies of scale are realized? Why not? IBM does it.

To: Z Analyzer who wrote (1891)	12/22/1997 6:55:00 AM
From: Stitch	Read Replies (2) \| Respond to of 9256

Z, Depends on whether you are looking for short term gains or long term. For my money if you are going to remain a big player you must have some control of heads and media. I dont mean just supply lines but I mean the technology as well. The real fulcrum lies here IMHO. Everything else is assembly (with exception of the r/w channel itself. best, Stitch

To: Z Analyzer who wrote (1891)	12/22/1997 6:31:00 PM
From: Thomas Haegin	Respond to of 9256

QNTM successful in heads manufacturing? Z Analyzer, I do not know as to the technological capacity of QNTM to do good in producing their own heads. As I have outlined in a little post today on the WDC threat, I think that outsourcing has benefitted WDC in the last few years. I'd say their business model shows that indeed, producing its own heads does not give a real edge. OK they are late now with MR. But is this due to unavailability or their sleepiness in getting the rest (production lines, etc.) up to MR in a timely manner? By and large I'd say that if you spent an extra X cents on outside heads may still be cheaper when the next downturn hits and you sit with your own overcapacity, JMO. BTW, RDRT and others want to remain competitive also. So they are doing their own research on headsl, pushing technology constantly forward. Also, WDC may still do their own research, but then, like with their electronic components, they may go and find a contractor supplier for these "proprietary" heads. I don't know, just my guess. Thomas