Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of hard drive specialist Seagate Technology
So what: Seagate's manufacturing facilities in Thailand remain operational, placing it in a prime position to grab market share and grow margins over the next few quarters. In fact, Seagate's first-quarter results yesterday, which were largely in line with expectations, already seem to be confirming that notion in the minds of investors.
Now what: I'd continue to be cautious about diving into Seagate. While its Thai operations are running at full production, Seagate still has a problem of where to get its components, as several of its key suppliers have also been affected by the flood. "Given the severity of the situation and the extensive supply constraints caused by the disruption, including those described by our primary competitor," CEO Steve Luczo said, "the effects on our industry are likely to be substantial and will extend over multiple quarters."
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