In the technology world, HDD is slowly but surely being replaced by SSD, which is getting cheaper.
SSD has much more advantages over HDD, but I don't think I will go into the technical details. Basically, SSD is harder to spoil and operates faster than HDD.
My view is that HDD will not last past 10 years.
That said, I am still going to buy a 1TB HDD to back up my current HDD
Reason, HDD spoils too easily. :x
Irrespective of HDD or SSD, the item still needs a label or two manufactured by Adampak or its competitors so still the question of share price decline as that could not be a factor. (HDD or SSD)
(02-08-2011, 12:44 PM)freedom Wrote: I believe the label for HDD/SSD is different at least in the sense of Adampak.
i did a quick google image search on SSD labels. the labels look like ordinary label. Pretty sure Adampak has the know how to produce such labels to their existing customers.
(02-08-2011, 12:44 PM)freedom Wrote: I believe the label for HDD/SSD is different at least in the sense of Adampak.
i did a quick google image search on SSD labels. the labels look like ordinary label. Pretty sure Adampak has the know how to produce such labels to their existing customers.
i have attached 2 examples in the post
I think it is not that "label" we are talking about.
Quote: Adhesive Free Zone Seals for HDD
Adhesive Free Zone (AFZ) Seals are used primarily in hard disk drives (HDD) to seal opening or holes such as clock heads, servos and screw holes. These seals are usually made of multiple layers of components using aluminum, copper or polyester as backing and the unique adhesive laminates together with a silicone free PET liner. The back of the seals will be custom die cut to allow an island of area without adhesive. This is achieved with our proprietary technology which we developed in-house.
Key criteria will be chemically clean adhesive, clean room conversion, high capacity ability and extreme quality.
Adampak offers extensive knowledge of the need for ultra low outgassing Adhesive and silicone free liners in the HDD.
Comprehensive in-house inventory of several different types of raw materials from 3M, Lintec, JDC, and Avery.
Class 1000 clean room conversion and Class 100 quality control and packaging room.
Full rotary, high speed, high precision machines to meet your increased volume demands.
I believe SSD does not have such AFZ seal thing. hope I am not wrong
(02-08-2011, 11:47 AM)momoeagle Wrote: In the technology world, HDD is slowly but surely being replaced by SSD, which is getting cheaper.
SSD has much more advantages over HDD, but I don't think I will go into the technical details. Basically, SSD is harder to spoil and operates faster than HDD.
My view is that HDD will not last past 10 years.
That said, I am still going to buy a 1TB HDD to back up my current HDD
Reason, HDD spoils too easily. :x
MRH HDD has been around for decades and as an IT professional, I see that they would be here to stay for much longer. Definitely they would not EOL within the decade.
Please look beyond the consumer space. The enterprise space have HUGE demand for MRH HDD. Servers, SAN, etc. They cannot quite so simply change to SSD or go away.
SSD has matured from laboratory to commercialisation. Now it's early adopter stage at best. GB for GB, SSD is still multifold in pricing, and where capacity is currently limited. There are still many issues that needs to be addressed such as the write cycle.
The still growing NAS market will also fuel the MRH HDD for a while more.
Adampak does more than just labels. They do seals and die-cut components as well.
Extracted from their Prospectus:
' Wrote:Our principal activity is the manufacture of labels, seals and other die-cut components mainly for the electronics, pharmaceutical/medical equipment and supplies and chemical industries. These labels, seals and other die-cut components are mainly pressure-sensitive, ie. self-adhesive.
Our Group also produces seals mainly for hard disk drives, and other die-cut components for bonding, sealing, insulation, protection and shielding purposes for electronics, telecommunication and other equipment.
So it appears that it is the seals that are purely for a HDD purpose while their labels and die-cut components stretch beyond the HDD sector. How much a portion of their sales come HDD seals (vs. labels and die-cut components) is a mystery since they lump everything as HDD (which compromise about 50% of total revenues as of last quarter). There was commentary on lower sales of die-cut components too in the last quarter statement too.
My personal take is that Adampak's not facing so much a problem of the obsolecense of the HDD. After all, we don't even know if they aren't doing labels or die-cut components for SSDs. And even if they aren't, the increase in consumer electronics using SSDs mean that commercial storage such as Cloud Computing services or App stores is required. We can't say if this eliminates or merely transfers the need for HDDs. And if this transfers the need, does Adampak have a role to play in fulfilling this need? If someone is in the know, please do share.
Looking at the USD/SGD chart since May, it appears that the FX rate is the strong headwind for Adampak. The raising of the debt ceiling means further headwinds for the USD. Weak economic data from the US also means that the pro-cyclical Tech sector will be the first in line of fire.
Well, no matter what, we'll have a better idea by Aug 15.
02-08-2011, 09:32 PM (This post was last modified: 02-08-2011, 09:33 PM by Some-one.)
Hi All,
Could I ask what exactly is a die-cut component? This is an extract from the Annual Report 2010 for AdamPak
"Sales to the telecommunication sector surged 40.6% (US$1.61
million) to US$5.57 million. The increase came mainly from
sales of die-cuts parts. Sales to the telecommunication sector
constituted 8.9% of Group’s revenue (FY2009: 7.3%)"
If die-cut component is related to HDD, then what has telcos got to to do with HDD?
What are the labels and nameplate that AdamPak is selling?
I am vested in AdamPak after it turns out in my value stock screening tool. I look at the financial statements of AdamPak over the last 10 years and is amazed by yearly increase in in EPS as well as the current ratio of about 4. I am now trying to understand its business.
I am new in the community after market talk in CNA becomes rubbish talk and is a value investor. Hopes to see more knowledge sharing of value investing.
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