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

To: Frodo Baxter who wrote (2969)	4/11/1998 12:06:00 AM
From: Stitch	Read Replies (1) \| Respond to of 9256

Lawrence, <<Is there any manufacturing company in the industry which can actually finance its own growth? Intel.>> I thought SEG financed its own growth and has for the last 4 years? Am I wrong? Don't tell me to look it up...I am much too lazy and your point is well taken anyway. <<(helps if your name's McCall or you used to work at T)>> It also helps if your name is Finis Conner. There are many deep pockets around who remember well the phenom that Conner and Seagate were at one time. I just question the timing. There must be a really top knotch design involved here with some possible milestone attached commitments from Compaq. This would not be unusual. He did exactly the same thing with Compaq to launch Conner Peripherals, not only getting commits on product take but a wad of venture cash as well. (the equity from which Compaq sold at terrific returns). I'll tell a personal story about Finis that you may enjoy. I was in a small group of folks visiting Finis at Conner's first ever Comdex booth. He had one of those towering displays and in the center was his new disk drive on a well lit turntable. It revolved slowly under the glittering lights. As we chatted, a Japanese fellow approached the display and pulled out a camera. He took picture after picture of the DD. Finis then excused himself, went to the little storage closet of the display, and pulled out his own camera. He then began to take picture after picture of the Japanese visitor. Looking puzzled Finis told the visitor that he planned to clone a million guys just like him and go into the automobile business! We laughed so hard tears rolled from our eyes. Finis once said that the key to any endeavor is the level of enthusiasm of the devotees. I believe him somewhat. I think he is one of the great salesman of this century. In fact, his single biggest management mistake, IMHO, was to bring Tom Watson into Conner Peripherals, losing apparently, his own confidence in getting people to rally to a cause, and deferring to Tom's brutal and confrontational style. Finis will succeed if he resumes the mantle of underdog and approaches this new company with that in mind. I am certain he already has all the money anyone would ever want or need. I hope he harkens back to his early experiences and his leaner years. I wish him success. Best, Stitch

To: Frodo Baxter who wrote (2969)	4/11/1998 8:38:00 AM
From: tom pope	Respond to of 9256

>>. It's easy enough to show a "profit," cuz there's no depreciation yet (all your machines are new) and you amortize your R&D.<< Amortization of R&D - point well taken. But the first earnings report by definition will have to include depreciation, and with accelerated depreciation, the newer, the higher the charge.