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

To: Pierre-X who wrote (3053)	4/26/1998 2:41:00 AM
From: shane forbes	Respond to of 9256

RE: You said: Maxtor is now making a profit and that the Hyundai parent may want to retain the operation. Yikes! I wish I had the background knowledge to make that claim... It was a quote from the article that I linked. It was a "Hyundai executive" who made the claim. ---- Back to the question on cash flow however, eenie meenie mynie mo... I'll guess perhaps maybe now on a quarterly basis +ve but considering they are planning to (cautiously) add capacity (from where do they get the money if the parent is so cash strapped as we know it is - Hyundai making priorities...), on a subsidiary basis I guess they won't be in the black real soon. All guessing. I know on the semi-side Hyundai recently dumped Symbios for something around 750 million or so (don't quote me on figure) so they are kinda desperate for money. As far as I know Symbios was a pretty good company that was sold (to Adaptec maybe?) fairly cheap. So yes considering they have oodles of foreign denominated debt, cash flow is important to them esp. dollars I guess and so I agree with you n/t cash flow is likely more (much more) important than profits. ---- On another matter: now that I think about it does anyone know what effect the lack of a market in Asia for DDs had on forcing the Asian makers to sell to the US (at least in the retail channel)? Assuming no one in Asia wanted to buy a DD, then together with cheap costs, the Asian makers had to sell somewhere so wham here they come to the US retail market and oops there goes the inventory for US makers piling up... Since I doubt if this situation has changed the only hope is that retail demand here continues to be robust and that the companies are not in a dumping mood. ---- Shane.