Scanning the Market for Profits: Komag Inc.'s Rise to Success

Strategic Insights -

Komag Inc. (NASDAQ:KOMG) is a leading independent maker of thin-film disks, used in desktop computers, network file servers, and other computer systems. The company's products, which are scanned by magnetic heads to record or retrieve information, have a stable customer base, with about 90% of its sales coming from leading disk drive makers such as Hitachi Global Storage Technologies, Maxtor, Seagate Technology, Western Digital, and IBM. Deutsche Bank has updated its ratings on Komag, expecting the company's shares to rise due to new customers, new products, and better results.

Key Takeaways:

  • Komag Inc. is a leading independent maker of thin-film disks, with a stable customer base consisting of major disk drive makers.
  • About 90% of Komag's sales come from Hitachi Global Storage Technologies, Maxtor, Seagate Technology, Western Digital, and IBM.
  • Deutsche Bank has upgraded Komag's ratings, expecting the company's shares to rise due to new customers, new products, and better results.
  • Komag has signed Samsung as a new customer, improving its stability in the desktop business.
  • The company is positioned to expand into the 65mm notebook market, which is growing faster than desktops.
  • Shares of Komag rose 4.78 percent to $38.17 in afternoon trade on the Nasdaq after the upgrade.

Statistics:

  • 90% of Komag's sales come from major disk drive makers such as Hitachi Global Storage Technologies, Maxtor, Seagate Technology, Western Digital, and IBM.
  • 4.78% increase in shares of Komag after Deutsche Bank upgraded its ratings.
  • $38.17 per share price of Komag in afternoon trade on the Nasdaq.
  • Komag is expected to rise due to new customers, new products, and better results.
  • 65% of notebook market growth is attributed to the 65mm notebook market.

Sources:

  • "M2 PRESSWIRE-31 October 2006-Small Cap News: Scanning the Market for Profits(C)1994-2006 M2 COMMUNICATIONS LTD RDATE:31102006"