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Technology Stocks : PC Sector Round Table -- Ignore unavailable to you. Want to Upgrade?

To: Frodo Baxter who wrote (1382)	1/15/1999 3:56:00 PM
From: Mark Oliver	Respond to of 2025

Interesting to hear your thoughts on shorting. Having just read them, I openned this e-mail from a company that refuses to stop sending them and got this. Regards, Mark 3. Disk Drive Fortunes Looking Up (SEG) Thursday, January 14, 1999 Disk drive makers enjoyed a healthy business over the past few months as strong PC sales were capped by an outstanding holiday season. According to market researcher PC Data, unit sales of PCs jumped 41% in December as US retailers chalked up PC sales of $1 billion in the month. "Though calendar '98 was mostly forgettable for the industry, signs of a very nice recovery are now showing up," says value investor John Buckingham, who has long been bullish on the slighted sector. One example is bellwether Seagate (SEG), who just trounced analyst estimates of $0.26 per share by reporting Q2 (ended 12/98) earnings of $0.42 per share. Seagate earned these impressive results by creating a 16% hike in gross margins to 23.8%, 3.1% more than last quarter. Though pricing remains competitive, Seagate management says the outlook is good and the firm predicts flat to modest revenue growth and improving margins in the face of a seasonally slow quarter. With and improving outlook in the drive industry and Intel's excellent earnings report, Buckingham boosted his goal prices for all of five of his disk drive recommendations: Seagate, Western Digital (WDC), Quantum (QNTM), Read-Rite (RDRT) and Applied Magnetics (APM). For more on John Buckingham's recommendation see "Hotline," January 1999, The Prudent Speculator. Al Frank and John Buckingham recommend out-of-favor, undervalued stocks trading for low valuations relative to what they think the businesses will be worth over the next three to five years.