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Technology Stocks : Seagate Technology - Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: LK2 who wrote (773)	4/11/1999 11:40:00 AM
From: Stitch	Read Replies (1) \| Respond to of 1989

Larry; You are right declining margins, over-competition, etc etc ad nauseum, is affecting the box makers as it has the whole supply line. The good news still lies in the corporate sector. But there is a lot of conjecture that the enterprise sector slows down after the next quarter as they will wait out Y2K. There is general hope and even prognostication that small business will pick up the slack as they generally have delayed their efforts in Y2K readiness. I am staying in SEG for what I view as strength in the high end. There is a current softening in PC sales and there have been some order pullbacks for materials among the desktop makers (especially WDC and Maxtor). I guess we will know soon enough how severe it is. Best, Stitch

To: LK2 who wrote (773)	4/13/1999 10:18:00 PM
From: Z Analyzer	Respond to of 1989

<<Plus, instead of the easy money trickling down from the box makers to the parts makers, like we've been hoping, it now looks like everyone might be in for a little pain, box makers as well as parts makers.>> A look at any of the component companies will show that its been years since they made easy money (except Intel). That's what I liket so much about Hutchinson. Increasing average selling prices, increasing revenues, expanding profit margins, growing earnings per share. And unlike virtually all the component manufacturers, Hutchinson's primary source of revenue, the TSA suspension, faces no serious competition at the present time. Fortunately, Hutchinsons increased average selling prices and increasing share of PC revenues are justified by the cost savings and improved reliability experienced by the disk drive manufacturers. As a result, Hutchinson would seem to be one of the very few component suppliers who will benefit from falling PC prices provided price elasticity exists, which it must. -Z