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

To: Robert Douglas who wrote (4708)	10/13/1998 7:39:00 PM
From: Stitch	Respond to of 9256

Robert; <<That is why you hear so much talk about “barriers to entry. High ROIC attracting capital is a natural law of finance. Often times these high returns lead to periods of over-capacity and subsequent low returns. This is precisely what has happened to the disk-drive industry.>> And it is precisely one of the reasons that Lawrence and I go round and round about the Seagate vertical integration strategy which I tend to favor. The barriers in the DD industry lie in the heads and media in my opinion. Witness the effect on WDC, Komag, AMC, and RDRT of the accelerated transition to MR head and media related technologys. Seagate's failure to capitalize has been execution related but the basic strategy is still sound IMO. I just hope they get their act together. We shall see what happens with Conner's entry in the desktop arena. Best, Stitch