Chanos sees downturn in hard disk drive industry
NEW YORK May 8 (Reuters) - James Chanos, founder and managing partner of short-selling firm Kynikos Associates L.P., said Wednesday that hard-disk drive companies are likely to decline.
Chanos, noted for predicting the downfall of Enron and a vocal bear on the Chinese economy, said at the Sohn Investment Conference that the hard disk drive business is a "value trap" that is nearing a downturn similar to that of the personal computer business. As examples he cited Seagate Technology and Western Digital Corp.
Western Digital was down 2.5 percent in after-hours trading, while Seagate Technology lost 3.4 percent.
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