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

To: Dale Stempson who wrote (2907)	3/24/1998 10:57:00 AM
From: Bill Lin	Respond to of 9256

Some section of thestreet.com mentioned that runups in industry sectors happen before all the good news is in. He backtested this by comparing industry prices with corporate profits, and found a definite lead in stock price surges. So we get PEs of 50-80 sometimes before profits finally hit big in companies. And as profits emerge, the players start hedging their gains, and the prices don't often follow the profits rise. I wonder if this is happening in the internet stocks right now, and as AOL starts making more than $0.20/share/qtr, its price will pull back... As for DDX stocks, i think that june is a good lead in month...(month for whole sector to bounce up) BL

To: Dale Stempson who wrote (2907)	3/24/1998 10:58:00 AM
From: Mark Oliver	Respond to of 9256

Yes, Quantum is trading up. Now that's a surprise. I'd say this is actually a very positive sign that the market may perceive a bottom. Strange because I would have said this problem is long from done. Afterall, we see CPQ going to Build to Order, but aren't we also going to see this at HP, and DEC. Have they all been so kind as to do it in the same quarter? When will it all be over? CEO talked about DLT demand down from 100% to 70% and this was a situation of adjusting to going off allocation. Unlike when drives went off allocation, there isn't a ubiqitous source of commodity tape drives to fill the need. I see Hutchinson doing very well. That's a strange one. I would have shorted them on their news and performance, but they just keep holding steady. Really, there is a positive tone that seems to keep these prices up. Regards, Mark