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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: La Traguhs who wrote (5499)	2/9/1999 4:46:00 PM
From: Sam	Read Replies (1) \| Respond to of 9256

LT, <<So then you might have the situation between WD and IBM as back when between WD and Tandem.>> You mean Tandon, yes? Which didn't even survive in any form; if I recall correctly, WDC bought their assets, the stockholders got burned to a crisp. s.

To: La Traguhs who wrote (5499)	2/9/1999 5:00:00 PM
From: Stitch	Read Replies (1) \| Respond to of 9256

LT, <<What seems to make the best sense from where WD is today in technology (very little) and financial resources (very little) is to become the desktop contract manufacturer for IBM and quit bumping heads with folks who really know how to do highend/server drives. Like IBM, like Seagate, like Fujitsu!!>> The fact that they won't do this is just another reason that WDC is still imminently shortable in the longer term. It is also why Maxtor is a long IMO. In any case, they way the market is behaving all of this discussion may be mute for a while. Best, Stitch

To: La Traguhs who wrote (5499)	2/9/1999 6:53:00 PM
From: Mark Madden	Read Replies (1) \| Respond to of 9256

"Already WD owes IBM a sack of cash." I was thinking IBM would like to purchase WD but the stock price is too high for an assembly company that has a book value of about 50 cents and will probably lose 60 cents next quarter. All IBM would want anyway would be the customer lists and relationships and maybe some good employees. This could speed their entry to the desktop market. If IBM is paying WD bills then they have a lot of leverage. They could pull the plug anytime they want. It will be pretty hard for WD to remain independent.