Thursday, November 17, 2011

JCY shares climb as Thai floods impact competitors

KUALA LUMPUR (Nov 17): Shares of JCY rose in active trade on Thursday as the hard disk drive maker stands to benefit from the shortage as its competitors are impacted by the severe Thai floods.

At 3.29pm, JCY was up 4.5 sen to 73 sen. There were 14.8 million shares done at prices ranging from 66 sen to 73 sen.

Reuters reported that hard drive production will remain very low for the next six months and store prices for PCs could rise as soon as the Thanksgiving holiday in late November.

It also said HP, which reports earnings on Nov. 21, has said it expects to secure the hard drives it needs but there are signs that the shortage may become painful in the coming months.

In late October, The Edge FinancialDaily said that component makers, which supply mainly to Seagate TECHNOLOGY [] plc, could well take pole position in the hard-disk drive (HDD) industry after rival Western Digital Corp was beaten out by the flooding in Thailand. The companies are JCY and Dufu.

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