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

To: Factfinder who wrote (2494)	2/20/1998 6:46:00 PM
From: Mark Oliver	Respond to of 9256

I wonder if you are right. You say Intel has been downgraded only to be upgraded again due to good performance from companies like Dell, but in reality I believe Intel is showing strong while competition from AMD and Cyrix/National are failing to get their production together which has left the percieved challenge from last year an empty threat. I believe there is little similarity to WDC and Intel. Intel is the technical leader. They have a very high margin product and the hold the dominant market share. WDC on the other hand has failed to maintain technical standing and has been punished severly in share price. They have a small piece of a highly competitve, low margin business. Their ability to buy leading edge technology has been tested and they failed. Finally, the competitve challenge from other players in the industry have not failed as with Intel and WDC has to fight for any sale based on price. So, as a fallen angel, are they a good investment for a come back? Good question, and perhaps so, but I'm not sure that I agree with your arguement. I think the fond memories of WDC give them an emotional value that will make many investors buy in despite problems. That alone may be worth seeing WDC rise from these lows. Regards, Mark