Adampak

[Some-one]

I'm wary about the placing my bets on a boost in business due to the mergers though. The article put up by sgmystique on the prev page seems to suggest that the main focus of the acquisitions may have been to access flash drive technology. As far as I know, I don't think Adampak supplies labels or die-cuts for flash drives yet, and even if they do, flash drives have no moving parts, so they would not require dampers would they?

And now that there will be less competition in the HDD manufacturing sector, I would think that a more oligopolistic industry would tend towards lower volume but higher prices. These higher prices may not filter through to the component manufacturers though, particularly for those components which comprise a small cost of the total hard disk cost.

In short, while management is prudent and balance sheet is strong, and of course the dividend is nice, I think that Adampak's industry may be facing poor prospects in the longer term. The poorer results this quarter may be more than a temporary blip. My feel.

Well, I did think about the industry as a whole for AdamPak before I invested. However, come to think about it. HDD is still the cheapest solution to storage and with companies all trying to cut costs to remain competitive, HDD would not die out unless SSD becomes more cheaper. Then perhaps that would be a time to divest AdamPak if it still cannot find anouther source of revenue.

Also, servers are still using HDD and not SSD. With the need to improve efficiency using technology and remain competitive, HDD would still remain the best alternative at this poin tof time.