Hard Drive Sector Down

By | March 7, 2006

Seagate’s (STX) price dropped to the mid 25’s. Seagate is not alone, the whole hard drive sector is down as a whole after a downgrade in Western Digital.

It looks like Western Digital is cutting off margins because of higher component costs but Seagate will not be affected. Seagate has the most advanced technology in the hard drive industry, however, Seagate may be hurt by the integration of Maxtor.

Still, over the long-term prospect, I think Seagate will do very well, and the stock price shall reflect that. This short-term price drop makes it a great opportunity to buy. I loaded up at $26.

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