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To: Ian@SI who wrote (10078)	1/17/1999 11:21:00 AM
From: Frodo Baxter	Respond to of 11057

>If you look at the Semi Equipment performance recently, all it took was a strong desire for the equipment recession to be over before the stock prices have tripled or better off their lows. True enough. Markets are forward-looking, but not necessarily right. It's pretty funny what they consider a recovery in HDs these days. A 4th quarter uptick with moderating price declines? Hello? Historically, there is ALWAYS a 4th quarter uptick. With NO price declines. NONE. Hmmm... As for lower inventories, the $64,000 question is whether they come from excess demand or production cutbacks. How well do production cutbacks work in curtailing price declines? I dunno. Ask the oil companies. BWDIK, Micron is bleeding cash and is poised to trade up to those halcyon $17 eps days.

To: Ian@SI who wrote (10078)	1/18/1999 9:19:00 AM
From: Hungry Investor	Respond to of 11057

Ian, Stitch and I are of the same mind on this stock. I also agree with your strategy of buying companies that have been beat up (but have a solid underlying business) and seeing them through the bad times. Again in this scenario, picking the bottom is the difficulty. I recently made a call on CD (Cendant) at $6.75. You remember the deal - fraud, financial restatement, etc. Underlying business(es) were great. Its now trading at $19 a couple months later. Apply to DD industry - badly beaten up due to pressure from OEMs, market oversupply, etc. Some poor deals, management shakeups thrown into the mix. I agreed that the industry was oversold back when QNTM was at $12 and SEG was at $16. They were great buys - but they were also the more solid of the bunch. Stitch is agreeing with you - DD was a good industry to jump into - but we are just questioning your pick of who will do the best in the industry. I have posted before that I think this one is a piece of dodo. I do not think that the IBM connection will be as strong as some may think and I have yet to see mgmt. make any statements of how it has helped them. I look forward to this next filing's MD&A. If there is no discussion of how its helping, then I'm probably going to pick up a short position. If they are going to become competitive from a technological standpoint, its going to have to be quick. No news on IBM is bad news. My 2.5 cents Scott.