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

To: Sam who wrote (4587)	1/21/1998 4:42:00 PM
From: John Wang	Read Replies (1) \| Respond to of 7841

Sam: <<Maxtor is another story, at least for the time being. Their problem, though, will be that even though they have hit this cycle pretty well, they may not have any money to hit the next one>> I have heard that their momentum with OEM's may have peaked last quarter due to financial crisis in Korea. If true, this is another sign that HDD stocks have bottomed out. For sub-1000PC, I am sure that the big three are rethinking their product strategies. John

To: Sam who wrote (4587)	1/21/1998 9:56:00 PM
From: Z Analyzer	Read Replies (2) \| Respond to of 7841

<<They think that the only serious competitors in that market would have to be fully vertically integrated (guess who that would be?); otherwise, no chance to produce drives for it profitably.>> B.S. An integrated company needs to earn a return on its component investments just as independent companies do. And they need to run each operation as efficiently as a focussed independent which Seagate has yet to prove themselves capable of doing. With respect to Maxtor, I have read and heard from a reasonably reliable source that they are being shopped. Question is who would buy them in this market, especially with their track record. I'm with you in hoping Samsung is ready to throw in the towel. Some capacity needs to disappear as with the Micropolis demise.