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.

Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: LastShadow who wrote (6339)	1/14/1999 8:38:00 AM
From: LastShadow	Respond to of 43080

DISK-DRIVE GROUP: Any doubts concerning the credibility of the disk-drive/storage group's turnaround were put to rest with Seagate's (SEG +2 5/8) much better than expected earnings report. Increased demand, reduced supply and improved operating efficiencies suggest that the rest of the group is likely to surprise the market with stronger than expected earnings. Favorable comaprison periods also bode well for the next several quarters. Street usually overestimates the upside and exaggerates the downside. And clearly the market was not prepared for the earnings recovery in this industry. As a result, look for investment firms to start tripping over themselves to upgrade earnings and ratings for disk-drive storage stocks. The flood of upgrades will provide additional fuel to the group's recovery rally. In addition to Seagate (SEG), a number of stocks setting new 52-wk highs including: Quantum (QNTM +1 15/16), Hutchinson (HTCH +1 1/8) and Maxtor (MXTR +1 9/16). Meanwhile, Western Digital (WDC +1 3/8), Read-Rite (RDRT +1/2) and Komag (KMAG +1 3/8) are knocking on the door... Despite recent gains, group's valuations remain attractive especially looking out a year.