To: William Epstein who wrote (6064 ) 10/22/1998 11:19:00 PM From: DJBEINO Respond to
KOMAG INC. - KMAG -- Conditions for the disk drive industry have been dismal at best, as reflected in stock prices for the industry across the board. In fact, even with the stocks trading at depressed prices, most analysts caution would-be investors against being lured by apparent rock-bottom prices. While there is some indication that industry fundamentals may be solidifying, the only meaningful change in recommendations is a lack of expectations of further earnings disap-pointments. Despite this discouraging outlook, a recent round of accumulation by Komag executives appears worthy of consideration. Granted, insiders at other companies in the disk drive industry were buying shares at what appeared to be bargain prices earlier in the year, only to see their stocks continue to fall. However, the number of shares being purchased by "seasoned" executives seems to confirm that negative news is not on the horizon. From August 6 to August 25, five executives purchased 110,000 shares at $2.88-$3.50 per share. Director Anthony Sun, a Board member since '83, bought 20,000 shares in his first open-market purchase since '91. Mr. Sun's affiliations with numerous tech-related companies appear to distinguish him as a seasoned industry insider. Director Irwin Federman's 20,000 share purchase was his first since initially filing in '88. Some of Mr. Federman's other affiliations include Western Digital, Advanced Micro Devices, and Sandisk. Director Craig Barrett, a Board member since '89 and an Intel executive since '74, bought 20,000 shares. Director Masayoshi Takebayashi, a frequent seller in the past, purchased 20,000 shares in his first open-market buy since initially filing in '92. Finally, SVP & Chief Technical Officer Christopher Bajorek bought 30,000 shares-his first open-market buy since becoming a filer in '96. Adding to the significance of this activity is that Komag executives were selling shares when the stock was trading at its highs. Komag Inc. develops, manufactures and markets thin film media disks, primarily for storage medium for digital data in computer hard drive disks.
