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

To: LK2 who wrote (4296)	8/31/1998 9:18:00 PM
From: Stitch	Read Replies (3) \| Respond to of 9256

Folks, Re: DD sector and "basing". In one of my previous posts I mentioned the paradox of seeing some early positive signals in the DD sector just as the investing world seemed to be waking up to the economic bad news in Asia and other emerging markets. The DD sector, already weak on a fundamental basis, would surely tank some more on a broad sentiment basis, I felt. Even in face of some early signs of recovery. Well, the world woke up much faster then I thought but awakened it is. The bear is out of hibernation and this bull is now a steer on a cattle car headed for a Kansas City holding yard. Most of us here have been watching the DD market long enough to know that demand isn't going to go away, and that there is no alternative technology. That demand is still out there but it is going to be significantly slowed by surrounding events. We are all going to be frozen in the headlights for awhile. Do any of you feel like going out to buy a new car today? Or a new PC? What of your Christmas list? Is it going to be pared a bit as you seek ways to preserve cash. Hell yes it is. Do you think corporate treasurers feel any different? We need more blood in this market. We need it because it will surely not revert to solid forward thinking until all the blush of past excess is off the rose. I think we need to see the following before even considering buying anything again. Abbey Cohen whatever capitulates Wall Street Journal announces a rise in brokerage related suicides Japan finally does something...anything Fed lowers rates Mutual fund redemptions rise, 401K contributions fall significantly Dow bases around 6300 As to buying DD stocks specifically we need to see a real consolidation move. IBM swallows WD. One or two vendors fold. Whatever. Ditto on heads and media. (I think we will lose a pure investable both of these sectors). I don't think we will be back in a solid way until Q1,99. Just my two cents folks.