Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mark Oliver who wrote (3004)	4/22/1998 4:05:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 9256

RE: Seems like they were the hardest hit and probably for good reason. The good reason as you probably know is that unlike the other 2 SEG and QNTM, WDC is almost a pure-play on hard drives. True they have the enterprise segment now and that adds "value" but unlike QNTM with their tape unit and SEG with software et al, WDC is like a pure bet on the eventual recovery of the hard drive sector. Thus since there are no business units for "diversification" they were justisifiably hit the hardest. Conversely if they pull through this downturn their price will rise the most on a percentage basis. Of course lots of things could go wrong. But my feeling is that WDC will take the longest to get going but once they get going they'll surge the furthest. On an industry wide basis there is still overall severe pricing pressure but fortunately unit demand is holding up (and growing) nicely. The pricing pressure will end sometime in the next 2 q's and the channel inventory of higher priced drives is down significantly. This all translates to the early signs of a recovery. I still think we have a way to go and I intend holding on for at least another 18 months. It might take that long to be a high flier again. Shane.