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Technology Stocks : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (10074)	1/17/1999
From: Ian@SI	Read Replies (1) \| Respond to of 11057

Stitch, I know much less about the HDD sector then the Semi Equipment companies. And it was my interest in UTEK that eventually led me into this sector. First, I think that WDC has been rightfully beat up for lagging the technology curve and other sins. I do like buying low and patiently waiting to sell high. While I'm waiting you may go through several profitable trade cycles. I'm averse to commissions and capital gains taxes. What's to like about this company? 1. the IBM agreement gives them a head start on getting up to date technology. This greatly reduces the time, cost and drain of research resources that would otherwise have been required. 2. Speculation on my part: I think the channel was clogged with drives and PCs containing drives. I think that the PC makers have cleaned up their mess and the HDD makers have probably cleaned up their over production mess. Thus I expect demand to be up relative to the demand during the channel clearing process. And I expect prices to be up for the drives sold. Thus I'm expecting more Sales and greater margins for the whole sector including WDC. I could be wrong. I've been wrong before. Thanks for the Zalesky comment. I'll save my "breath" in future. However, the strategy sounded utterly inane to me; and I was hoping to learn something. Ian.