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- Path: sparky!uunet!crdgw1!rpi!uwm.edu!ux1.cso.uiuc.edu!cs.uiuc.edu!watanabe
- From: watanabe@cs.uiuc.edu (Larry Watanabe)
- Newsgroups: misc.invest
- Subject: Re: Conner Peripherals
- Message-ID: <C1J1y9.8D5@cs.uiuc.edu>
- Date: 27 Jan 93 19:25:21 GMT
- References: <1993Jan21.094943.241@forsyth.wsnc.org>
- Organization: University of Illinois, Dept. of Comp. Sci., Urbana, IL
- Lines: 29
-
- ja@forsyth.wsnc.org writes:
-
- >Conner Peripherals closed Wednesday 1/20/93 up 3 to approx. 23. The
- >company has a low p/e and has been mentioned in Value Line.
-
- >Does anyone follow this company/stock ?
-
- I think that they sell about 20% of their drives to Compaq.
- So, when Compaq stock rises, Conner tends to follow.
-
- The stock is also just rebounding, because it dived in
- sympathy with Seagate. Seagate only met analyst's expectations,
- which tend to be conservative, so all the disk drive companies
- plunged 25% or so on the news.
-
- Seagate also admitted that "the competition is heating up".
-
- Conner has the smartest strategy among the disk drive makers,
- which is why it sells for the highest P/E. For example,
- it sells for nearly 3 times the P/E of Maxtor.
- So, the P/E is high, not low. Also, remember that these
- companies are cyclical: they go through boom and bust
- cycles. So you have to look at the absolute price,
- as well as earnings. It is selling at a high. Will
- the current demand for PC's continue, or is this just
- the peak of a demand cycle (followed by 3 years until
- people decide to replace their current machines).
-
- -Larry Watanabe watanabe@cs.uiuc.edu
-