Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Seagate Technology - Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Carl R. who wrote (31)	11/9/1998 12:18:00 AM
From: Stitch	Respond to of 1989

Carl, <<If you are developing your own heads, it can be an advantage or disadvantage depending on how good a job you are doing.>> No question this is a given and my discussion re: Vertical vs. Virtual assumes execution. If you falter, it doesn't matter what your strategy is, its still a falter. I think you have to weigh the importance of development in heads and media. To not own current IP in heads and media, in this business, is akin to a race car with a flat tire IMO. One has to also weigh the enormous capitalization involved as well, and that complicates the ROE calculations. Another point we seldom discuss here is whether or not SEG's efforts to create a first class R&D facility in Pittsburg is a good thing or not. I happen to like it. The R&D efforts at SEG have been too fragmented and geographically dispersed IMO. IBM's Almaden Research center has unquestionably been a jewel in their crown. The only cautionary thought that occurs to me is that SEG will have to manage the technology pass to the rest of the company very closely and assure that the "ivory tower" syndrome is just enough to encourage free creative thinking but not enough to allow walls develop or commercialization to languish. I mention Almaden as a good example so I will mention Xerox' Palo Alto Research Center (PARC) as an example of some fine technology work that failed badly in terms of return on investment for whatever reasons. best, Stitch