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

To: stockbug who wrote (3085)	5/8/1998 11:21:00 AM
From: Swathi Vanniarajan	Read Replies (1) \| Respond to of 5058

It is evident that shorts are making a great deal of the IBM-WDC deal. If it is such an important news, why is it that WDC still laggers? In fact, WDC says that they may use IBM technology and manufacture disks even before IBM. This is something unusual, maybe, IBM is trying to use WDC as their guinea pigs, as otherwise, why should they allow another company to introduce their technology. Smart money is moving out of RDRT because the stock will not recover for one or two quarters. It is possible to get out and get in without losing any money. It does not mean RDRT is not a value play. To claim that RDRT will file for bankruptcy is an irresponsible statement. RDRT is quite big enough to survive this inventory turmoil. They have their manufacturing facilities all over Asia that cost will be an advantage once the business picks up. Also, since both SEG and RDRT are located in Asia mostly (of their manufacturing facilities), a merger is also possible, the way to fight the IBM-WDC merger in case it happens. The disk storage business is so big that a turnaround is more than likely around September quarter and we will all see $20 in no time. Just my two cents. Dr. S. Vanniarajan