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Technology Stocks : QUANTUM -- Ignore unavailable to you. Want to Upgrade?

To: Mark Oliver who wrote (7761)	4/24/1998 2:03:00 AM
From: Frodo Baxter	Read Replies (3) \| Respond to of 9124

True enough, but doesn't anybody care about profits anymore? Yeah, it's nice that they're already shipping the next Fireball, the Viking II is actually qualing, and that they're going to junk Atlas after this iteration, but this overcapacity issue needs to be resolved, and it isn't. I like Quantum management. They are a conservative bunch and don't do stupid things, like their competitors. But let's see where that has gotten them. IBM and Maxtor have gained share, Fujitsu has priced very aggressively, and Seagate and Western Digital have bloated their inventories then barfed them onto the channel. Quantum has... voluntarily cut back production and pulled in inventory. Up to now, I thought that was commendable. But I'm tired of this nonsense, that despite historical guidance, has already consumed 3 quarters running and will continue as long as supply capacity > demand. Quantum is still the leading desktop supplier, known throughout the industry for dependability and reliability. If they played price leader for a while, the volume and market share will be theirs. Now is the time to tighten the screws! It's endgame time, time to shake out the marginal players for good. I figure (wild ass guesses), if Quantum loses $100 mln, Seagate will lose $200 and Western Dig and Maxtor $300. That should be enough to kill Maxtor and Western Dig. Remember, iterative prisoner's dilemma. Tit-for-tat. It's time for Quantum to spank back at those who destroyed this industry. After all, despite all this talk about mergers and liquidations fixing the oversupply, not a single meaningful transaction has occurred. Cripes, even Samsung is still around. Have a nice day, Mary Poppins