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

To: Tmanquinn who wrote (4539)	1/16/1998 6:02:00 PM
From: DJBEINO	Read Replies (1) \| Respond to of 7841

Disk-drive hardships no surprise zdnet.com

To: Tmanquinn who wrote (4539)	1/17/1998 11:00:00 AM
From: dlc	Respond to of 7841

Lets take a look at the facts. Unit volumes are not going through the roof. All the major players have announced a glut of inventory they have to get rid of. That means that high order rates for suspension arms (HTCH), heads (RDRT), and other products in the past several quarters are slowing down. Yes, the disk drive business is still growing, but there has been too much production capacity, therefore too much ordering of parts from HTCH. A classic backlog. This will take several quarters to work out. Add to this a more competitive environment from Asian drive suppliers who do not buy from HTCH, the increasing popularity of network computers that do not have a hard disk, and the larger amounts of R&D spending by HTCH, and it adds up to big losses. At some point in the future HTCH may make money, but for the next 6 months at least, they will lose big time. If the hard disk industry wide shakeout continues, expect HTCH to be selling for close to $10. This is not even close to the time to buy HTCH