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

To: Robert Douglas who wrote (4163)	8/12/1998 1:17:00 PM
From: Sam	Read Replies (1) \| Respond to of 9256

"What Mr. Conner seems to be telling us is that his new disk drive company will add nothing to the technological body of knowledge and take no business risk. Something doesn't smell right about this whole thing." Its great work if you can find it. But he's probably putting up some of his own substantial fortune; I can't imagine CPQ would bankroll him without him risking something besides his reputation. Still, it seems like a sweet deal for him, depending on how much money he has to put up. All he has to do is get one of the many ECMs to agree to devote a couple of factories to his output. And if he is manufacturing in the Far East, which he almost certainly is, his and CPQ's dollars will go a long way. Puts the pressure on SEG to get their sub-1000 entry out the door in a hurry. They better have some sharp, efficient people focussing on it, or they'll get blindsided. CPQ will probably win either way--one way like they did in the mid/late 80s, with some substantial capital gains if FC is successful, or, if not, then they will have some great, cheap drives from other manufacturers, which may make up for whatever capital loss that they will have to write off on the venture.

To: Robert Douglas who wrote (4163)	8/12/1998 8:04:00 PM
From: Stitch	Read Replies (4) \| Respond to of 9256

Robert, Conner is one of the world's great salesman. If the component suppliers think he has commits from Compaq and other OEMs, and a way to link the technology advantages together in a much cost reduced package without inflicting too much pain on them, then they will leap for it. At least they won't have to worry about being pummeled by an in-house vertical supplier. Sales channel controls and finished product design are enough value added would be the contention here. Though I am like you. In the long term I do not believe it is a viable strategy. But for now it is a horse race for a fast growing market segment and little else matters. (It will be interesting to me to see where they locate the factory for this one). If I were Conner I would eyeball existing infrastructure for a quick start. A deal with WDC and IBM???? Maybe??? Conner may be poking his head out of retirement to be a great one-shot broker.) Caution: latter comments the product of very far reaching and imaginitive ramblings. best, Stitch