Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Businessweek Archives

For Maxtor, A Nice Niche In Servers?

BusinessWeek Investor -- Inside Wall Street

For Maxtor, a Nice Niche in Servers?

Expect the stock of Maxtor (MXTR), a provider of hard disk drives for PCs, to catch fire soon--for two reasons: The company is poised to unveil, say some pros, an array of Web-enabling and Linux storage server products. And a major PC maker is said to be negotiating to buy Hyundai's 36% stake in Maxtor.

This month, says a big investor, the company will outline its entry into the storage server and network attached storage (NAS) markets. It will provide Web storage servers to Internet service providers and e-commerce companies, and Maxtor expects to sell them to the likes of Intel, Sun Microsystems, Dell, and

Vince Carrino, president of Brookhaven Capital Management, who has a 5% stake in Maxtor, says this niche market will be hot. He expects Maxtor's sales in that business to grow from $30 million in 2000 to nearly $500 million in 2003. Other players in the business trade at 50 to 100 times 2000 revenues, vs. Maxtor's 23. The stock, now at 7 a share, is dirt cheap, says Carrino.

The PC maker seeking to buy Hyundai's 40% stake could be a powerful, deep-pocket partner for Maxtor in its fight with the bigger rivals and help fund its disk drive and Linux storage server business.By Gene G. MarcialReturn to top

Return to top

blog comments powered by Disqus