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To: Sam who wrote (8406)	1/8/1998 12:37:00 PM
From: Pierre-X	Respond to of 11057

A good point, and honestly I was right there with you six months ago. However, subsequent events proved illuminating, as well as spurring me to do some heavy research into the microeconomic structure of the industry. I initially became cautious about the state of the sector from a supply viewpoint. Now my concern has shifted to the demand side. I believe the nature of the industry requires demand in excess of expectations for a boom to occur (along with some other factors outside the scope of this post). The HDD investor can only assured of healthy returns during boom periods. Otherwise the sector rates an avoid. That said, I can see several possibly demand drivers on the horizon, including higher bandwidth Net applications, some forms of video applications and videoconferencing, and speech interfaces. If any of these reach critical mass, savvy investors should be able to see the approaching demand wave and trade accordingly. I have seen no such demand wave as yet. PX