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Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (11338)	1/28/1998 8:40:00 AM
From: T Bowl	Read Replies (2) \| Respond to of 12298

Hi. It's me again with a little news to cheer the gang up.... Strange volume during the last few days huh? I don't understand it at all! But my guess is everyone is holding off doing anything until we hear from WDC tomorrow night. Actually it's interesting to look at both WDC and APM during the last few trading days - similar patterns IMO. Now the bad news. The last time we heard anything from WDC about the desktop biz was on 02dec97 in the "Western Digital Announces Actions to Address Industry's Sustained Oversupply and Aggressive Pricing Conditions" PR. 6 weeks ago... So, after that we heard from RDRT and APM concerning the TFI cutbacks, but we haven't heard from WDC since... What they say Thur night will either mean the shorts panic or the longs do. A little info that makes me comfy about my current situation. On 02dec97 I saved the avg selling prices of WDC DDs at CDW. I looked again yesterday. Here's what I saw [WDC P/N and (head family)]: Model # 2-Dec-97 27-Jan-98 % Change AC11200(1.3) $158.11 N/A AC21200(0.8) $155.89 $155.89 0 AC21600(1.0) $168.11 N/A AC22000(1.0) $199.71 $165.20 -17 AC33100(1.0) $229.74 N/A AC33200(1.3) $219.79 $197.39 -10 AC34000(1.3) $274.19 $237.52 -13 AC34300(1.7) $288.35 $259.42 -10 AC35100(1.7) $377.07 $275.33 -27 AC36400(2.1) $314.62 $306.31 -3 Looks like the 1.0GB TFI products are finally getting moved through the channel and are being dropped from the price list(WDC no longer produces them). The AC11200(single platter 1.3GB TFI product) is no longer listed by CDW either. I called and they said that their distributor has no more product. I don't know whether that is strictly related to CDW, or the the 1.2GB era is over or that WDC is no longer making it or what, but it's not a good outlook for 1.3GB TFI. Remember, this is from ONE source... But a 22% drop in the price of the 2.5GB?!? WDC can't be making any money on that DD. They won't continue to produce it if it doesn't contribute to fixed costs - they've said that. The 1.7GB family looks better off(a little bit). I think you can safely ignore the price of the 5.1GB DD on 02dec97. It was off the map. It took CDW a few weeks to drop the price below that of the 6.4GB. Since then it's dropped around 10%. You can see the price cuts are VERY serious across the board, except for the 6.4GB which might have been cheap out of the box I guess. The price cuts have been pretty steady over the last 6 weeks. Just last week it looked like everything was cut another 5%. Dreary for WDC todd