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

To: Mark Madden who wrote (3184)	5/2/1998 10:27:00 AM
From: shane forbes	Read Replies (1) \| Respond to of 9256

From current Barron's at least someone is buying DD stocks: On the other hand, Rajaratnam has been buying other turnaround stocks, like the drive makers, "rather than chase high-multiple stocks." That's an interesting call, given Rajaratnam's track record on the group. When we talked to him last November, he'd been shorting the drive stocks. A brilliant call, as it turned out. Still, drive-industry fundamentals remain weak. Alan Lowe, president of ReadRite, a Milpitas, California, maker of disk-drive heads, asserted that March was "definitely the bottom" for the drive industry, but warned that there remains "extreme pricing pressure." Steve Luczo, chairman of Seagate Technology, confirmed that his company has started a program to produce drives specifically for the sub-$1,000 market, and forecast that inexpensive models of that type would quickly account for 20%-25% of desktop PC sales. ----