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

To: Stitch who wrote (2046)	1/4/1998 12:12:00 PM
From: Gottfried	Respond to of 9256

Stitch, LOL! GM <eom>

To: Stitch who wrote (2046)	1/4/1998 12:54:00 PM
From: Z Analyzer	Respond to of 9256

With Maxtor talking of a profitable quarter, one would have to believe that their inventory would have a tremendous impact this quarter. Imagine that they had built inventory going into the Dec qtr with the won at a higher exchange rate. Then later in the quarter, the sales of drives bring in twice as many won as previosly planned. It would also be interesting to know whehther they use LIFO or FIFO which would result in dramatic differences in costs. Aside from that, assuming they are efficiently producing high volumes of drives with high areal densities, they should be profitable. QNTM, SEG and WDC are all being draggged down by their own unique problems. Its scary to look at Maxtor's recent ramp and then a potential doubling with the China plant. Its like adding a company the size of Quantum in a very short time span.