Anyone else read the Seeking Alpha article on the (possible) new Hutch product? Reaction? Is this something that has the potential to transform the company from a cigar butt business (hard drives) to something else, something with a brighter future?
In my opinion, the SA article illustrated the stupidity of the author. He got it completely wrong about why HTCH fell and what happened to their volumes. The right reason is they played hardball with Seagate a couple years ago and lost. Simple as that.
He is also woefully wrong about SSD. But for this he can be forgiven since he is in a crowd with many.
HTCH is going to rise long, hard, and strong because they will have significant EPS in FY14 starting Oct 1st. This will be from their core HDD business and nothing else...IMO.
I did find the "new product" angle of the article interesting. I have no idea if it is true. If it is true I hope it does not become a costly distraction for Hutch. Best case would be it is true and they can license it to the camera boys and collect royalties and license fees.
The problem with Segate is HTCH could not deliver on time. They should have the best old product out on the market by now. I wouldnt be surprised they gain the markwt back with quality and price. Now, to discuss new product... hard to make new product- most fail or take years to perfect. What I would like is if the new product uses their existing process and knowledge. If this is a stabilizer then HTCH may do well.
don't recall ANY research, or otherwise, implying that HTCH will be even close to a sniff of profitability during calendar 2013..furthermore, given there track record, I'd expect them to sell out before they ever make money again since they missed the boat in 2005-9 with their poor decisions.
My thought is buying here, later in the year below $2.00(tax loss sellers) and holding from there.( me thinks I'll get my way)
Management will either be forced to sell in 2014-2015 or simply give up......
Good luck, nonetheless on your bold profit outlook in October...