It’s a tough day for the storage sector. Seagate (STX), Western Digital (WDC), and Maxtor (MXO) all were down in anticipation of a price war. Seagate is down 5.7%, Western Digital is down 7.9%, and Maxtor is down 5.9% as of writing of this post. According to the article, It’s a Hard Day for Hard-Drive Makers, it looks like Seagate is in a good fighting position and Western Digital is on the edge. Seagate is efficient in their productions and with the completion of the merger, they’ll be able to expand their market exposure.
Looking at one-day graph of Seagate, it looks like STX has bottomed out from the news and money is pouring back in. The hard drive sector definitely has a lot of room for growth and buying Seagate (STX) is a great way to capture some of the returns.