Retailers Race for Seagate’s Limited Disk Drive Supply

Seagate (NASDAQ:STXis predicting a disk drive shortage through 2012 due to flooding in Thailand. Though Seagate’s factories are outside the flood zone, the company relies on parts from as many as 130 distributors who were not so lucky.

Some Wall Street analysts have predicted that the disk drive shortage would be resolved as soon as this summer, but Seagate’s (NASDAQ:STX) CEO Stephen Luczo says otherwise. Bloomberg quoted Luczo who said, “This is going to take a lot longer than people are assuming, until the end of 2012 at least, ”he says. “And by then, demand will have gone up.”

Bloomberg reports that the average price of a disk drive is already up 20% due to the floods. The affected flood zone produces nearly 40% of the world’s drives. Despite the high prices, retailers are already trying to secure their share of drive production by offering Seagate (NASDAQ:STX) as much as $250 million up front according to Luzco. “It’s going to be very interesting to see who gets drives and who doesn’t,” remarked the CEO.

Here’s how top disk drive manufacturers are trading:

  • Seagate Technology. (NASDAQ:STX): STX shares recently traded at $16.01, down $0.75, or 4.47%. Its market capitalization is $6.72 billion. They have traded in a 52-week range of $9.05 to $18.60. Volume today was 13,748,747 shares versus a 3-month average volume of 10,245,500 shares. The company’s trailing P/E is 14.62, while trailing earnings are $1.10 per share. The company pays a dividend of $0.72 per share for a dividend yield of 4.50%. About the company: Seagate Technology PLC designs, manufactures, and markets rigid disc drives for enterprise, personal computer, and consumer electronics applications. Get the most recent company news and stock data here >>
  • EMC Corporation (NYSE:EMC): EMC shares recently traded at $23.07, down $0.3, or 1.28%. Its market capitalization is $47.06 billion. They have traded in a 52-week range of $19.84 to $28.73. Volume today was 18,167,047 shares versus a 3-month average volume of 22,378,600 shares. The company’s trailing P/E is 22.96, while trailing earnings are $1.00 per share. About the company: EMC Corporation provides enterprise storage systems, software, networks, and services. The Company’s products store, retrieve, manage, protect, and share information from all major computing environments and mainframe platforms. EMC operates offices around the world. Get the most recent company news and stock data here >>
  • Western Digital Corp. (NYSE:WDC): WDC shares recently traded at $26.04, up $0.78, or 3.09%. Its market capitalization is $6.09 billion. They have traded in a 52-week range of $22.64 to $41.87. Volume today was 5,636,375 shares versus a 3-month average volume of 5,207,240 shares. The company’s trailing P/E is 7.98, while trailing earnings are $3.26 per share. About the company: Western Digital Corporation designs and manufactures hard drives for desktop computers and home entertainment applications. Get the most recent company news and stock data here >>
  • SanDisk Corp. (NASDAQ:SNDK): SNDK shares recently traded at $48.72, down $0.8, or 1.62%. Its market capitalization is $11.71 billion. They have traded in a 52-week range of $32.24 to $53.61. Volume today was 5,187,051 shares versus a 3-month average volume of 8,583,270 shares. The company’s trailing P/E is 9.90, while trailing earnings are $4.92 per share. About the company: SanDisk Corporation supplies flash data storage products. The Company designs, manufactures, and markets industry-standard, solid-state data, digital imaging, and audio storage products using its patented, high-density flash memory and controller technology. Get the most recent company news and stock data here >>
  • NetApp, Inc. (NASDAQ:NTAP): NTAP shares recently traded at $34.74, down $0.99, or 2.77%. Its market capitalization is $12.80 billion. They have traded in a 52-week range of $33.00 to $61.02. Volume today was 9,489,433 shares versus a 3-month average volume of 8,174,860 shares. The company’s trailing P/E is 21.09, while trailing earnings are $1.65 per share. About the company: NetApp, Inc. provides storage and data management solutions. The Company’s storage solutions include specialized hardware, software, and services that provide storage management for open network environments. NetApp serves enterprises, government agencies, and universities worldwide. Get the most recent company news and stock data here >>

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