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

To: Stitch who wrote (2595)	2/27/1998 12:43:00 AM
From: Z Analyzer	Read Replies (2) \| Respond to of 9256

HTCH ain't telling the whole story. Slower TSA ramp but more so Asian competition have to have as much to do with their problems as the drive industry's production slow down to correct inventory. I'm short a small amount of HTCH but don't know at what price I would go long given the fact that their present situation cannot be adequately explained by them and it looks like a long road to just breakeven. Probably not above $18 for me.

To: Stitch who wrote (2595)	2/27/1998 9:07:00 AM
From: dlc	Respond to of 9256

You are probably right, but the other part of the equation is that their customers are not converting to TSA across all product lines. They seem to be taking their time to do the conversion, and for some of the product lines it is cheaper to stay with the old suspensions and wires. The biggest issue at the moment is that the bulk of their business is still the old suspensions, and their is a big glut of those drives on the market. All the drive companies have cut way back on production. It is a classic case of a drop in demand for the old product before the new product can ramp up and claim the same revenue. Probably another two bad quarters before it starts to turn around.