Best of the Week
Most Popular
1.SNP Offers Labour Deadly Death Embrace Alliance, Holding England to Ransom, Destroy UK From Within - Nadeem_Walayat
2.Gold And Silver – Most Widely Used Currency In Western World? Stupidity - Michael_Noonan
3.Election Forecast 2015 - Coalition Economic Recovery vs Labour Collapse - Nadeem_Walayat
4.Election Forecast 2015 - Debates Boost Labour Into Opinion Polls Seats Lead - Nadeem_Walayat
5.Why are Interest Rates So Low? Ben Bernanke, Confused as Ever, Starts His Own Blog to Prove It - Mike_Shedlock
6.Leaders Debate Election 2015 - Natalie Bennett Green Party Convincing Anti-Austerity More Debt Argument - Nadeem_Walayat
7.Labour Economic Collapse vs Coalition Recovery - UK Election Forecast 2015 - Video - Nadeem_Walayat
8.China’s Stock Market Mania; How High can Red-chips Fly? - Gary_Dorsch
9.Gold and Misery, Strange Bedfellows - 31st Mar 15 - Dan_Norcini
10.Ed Miliband Debate Election 2015 Analysis - Labour Spending, Debt and Economic Collapse - Nadeem_Walayat
Last 5 days
Sheffield School Places Election Crisis - Affluent Schools Demand Increase in Funding - 27th Apr 15
Labour Bribes Voters With Housing Market Stamp Duty Cut and Rent Controls - 27th Apr 15
Stock Market SPX Index at Resistance - 27th Apr 15
Society's Leaders Have Been Digging a Bottomless Economic Pit - 27th Apr 15
Impending Stock Market Top - Trend Forecast Summer 2015 - 26th Apr 15
Desperate Stock Market Bubble Thinking Takes Hold on Wall Street - 26th Apr 15
Stock Market Back into The Bear Suits - 26th Apr 15
One Stock Market Where You Haven't Missed the Bull Market Boom Yet - 26th Apr 15
Migrant Crisis - Europe Has Completely Lost It - 26th Apr 15
What Obama's First-Ever Energy Review Missed - 26th Apr 15
Sheffield Hallam Election Battle 2015, School Places Crisis, Can Nick Clegg Win? - 26th Apr 15
Stocks Bull Market Looks to Resume - 25th Apr 15
Gold And Silver - The U.S. Is A Corporation. Precious Metals Stand In The Way - 25th Apr 15
When the Nuclear Money Option Fails - 25th Apr 15
The War on Cash Special Report - 25th Apr 15
China Economic Slowdown Story - Why “Didi Dache” Is a Phrase You Need to Know - 25th Apr 15
The Trans-Pacific Partnership and the Death of the Republic - 25th Apr 15
Stock Splitting Caused the Stock Market Crash - 25th Apr 15
China Stock Market Parabolic Mania’s Global Risk - 24th Apr 15
What Will Happen to You When the U.S. Dollar Collapses? - 24th Apr 15
Why 2 of U.S. Dollar's Recent Bottoms Have 1 Thing In Common - 24th Apr 15
UK Economy Debt Timebomb Will Explode After Election - 24th Apr 15
Are Gold Stocks the Cheapest Ever? - 24th Apr 15
God, the Stock Market and Pascal's Wager - 24th Apr 15
Greedy Insurers Are in for a Nasty Surprise – Positioning You for Big Profits - 24th Apr 15
Four Things Missing From Obama’s First-Ever Energy Review - 24th Apr 15
How to Grow a Regenerative Medicine Industry - 23rd Apr 15
Stocks and Bonds Seven Year of Negative Returns; Fraudulent Promises - 23rd Apr 15
The Existential Danger To The Euro Is Elections - 23rd Apr 15
Stock Market No Clear Direction As Investors React To Quarterly Earnings Releases - 23rd Apr 15
Is China The Next United States? - 23rd Apr 15
U.S. Oil Glut: How High Can It Go? - 23rd Apr 15
Distorted Financial System Expect Deflation, Inflation And Hyperinflation - 23rd Apr 15
What McDonald’s Corporate Earnings Report Is Really Telling You - 23rd Apr 15
Gold Price Forecast to Become Priceless - 23rd Apr 15
FDIC Plots a Bank Heist Involving YOUR Accounts - 23rd Apr 15
$GOLD Price Year 2007 Again - 23rd Apr 15
Stocks Bubble - The Spread between Stock Prices and GDP is Blowing Out - 23rd Apr 15
Ukraine War - When Did We All Become Murderers? - 23rd Apr 15
Libya Crisis - EU Leaders Are Indicted for Nazi-Style Crimes against Humanity - 22nd Apr 15
Why Alternative Energy Isn’t Taking It on the Chin Despite Low Oil Prices - 22nd Apr 15
Bill Gross - German 10-Year Bunds Short of a Life Time - 22nd Apr 15
How to Profit from the Drop in the Oil Price - 22nd Apr 15
The U.S. Dollar's Move Is More Dangerous than You Think - 22nd Apr 15
Apple Watch Means Apple Will Become Worlds First $1 Trillion Stock - 22nd Apr 15
Half a Stocks Bubble Off Dead Center - 22nd Apr 15
They Said Go to College - Learning to become Debt Slaves - 22nd Apr 15
Best Cash ISA 2015/16, Instant and Fixed Savings Interest Rates, New Flexible Withdrawal / Deposit Rule - 22nd Apr 15
Unsound Banking: Why Most of the World's Banks Are Headed for Collapse - 21st Apr 15
Bitcoin Recent Low Price Volatility Might Be Deceptive - 21st Apr 15
Currency Wars Back As Russia Buys Gold - One Million Ounces in March Alone - 21st Apr 15
The Greece 'Grexit' Issue and the Problem of Free Trade - 21st Apr 15
Why Europe Lets People Drown - 21st Apr 15
Wealth Destruction for the 99.9 Percent - 21st Apr 15
SNP Publish England's Suicide Note as Pollsters Still Forecast Labour-SNP Election Disaster - 21st Apr 15
Characteristics of Extremely Over-Indebted Economies - 21st Apr 15
Trader Education Week -- a Free Event to Help You Learn to Spot Trading Opportunities - 21st Apr 15
Gold & Silver Alert: Silver Stocks’ Signal - 20th Apr 15
Now is the Time to Buy Resource Stocks, Especially Gold Equities - 20th Apr 15
DJ Transportation & Utility Averages Suggest Stocks Bull Market Is Over - 20th Apr 15
Crude Oil Price Bull Market Hope - 20th Apr 15
Stock Market Bears Get Slaughtered Despite Greece Counting Down to Grexit Financial Armageddon - 20th Apr 15
The Rise of the Paper Machines - 20th Apr 15
Gold and Silver Inflection Point - 20th Apr 15
SP500: A Butcher's Stock Market (Chop Chop Chop) - 20th Apr 15
Are Stock Market Bears Slowly Gaining Control? - 20th Apr 15
Sugar Commodity Price Bear Rally - 19th Apr 15
Avoid the Spread of the Stock Market "China Syndrome" - 19th Apr 15
Stock Market Going Nowhere Fast - 19th Apr 15
An Easy Way to Profit From the Two Biggest Trends in the Stock Market - 19th Apr 15
No Scripture Is Divine, Authentic and Beyond the Creation of the Human Brain - 19th Apr 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The War on Cash!

Helium Filled Hard Drives Could Turn Western Digital Into a Big Winner

Companies / Tech Stocks Jan 16, 2013 - 11:12 AM GMT

By: Money_Morning

Companies

Michael A. Robinson writes: With the commodities boom still in full swing you are probably aware the advantages of owning stocks related to gold, silver or other hard assets.

But when was the last time you heard someone extolling the investment virtues of helium?

And I'm not talking about helium as most folks think of it - in those giant (and comically overpriced) party balloons.


You see, a unit of disk-drive maker Western Digital Corp. (NasdaqGS: WDC) says it's discovered a way to help pump up the corporate computer networks around the world.

It'll debut later this year. And helium will be the active ingredient.

Helios ... the Greek God of High-Tech Profits
Named for the Greek god Helios, helium is created by the sun's nuclear power plant (by fusing hydrogen), and is vital for life on earth.

If you're finding it tough to make the mental jump from Greek gods and life-giving forces to life on the Nasdaq, that's understandable.

So just focus on another "life force". It is the force behind the one key challenge that businesses all around the world confront each and every day.

I'm referring to "Big Data."

A full 90% of the digital data that exists in the world today has been created in the last two years alone.
And with all the new videos, song files, photos, blog posts, business records and Websites that continue to be created, we're producing an additional 2.5 quintillion bytes of data each and every day.

Think about biotech research into gene therapies, social networks with billions of photos, and Web search indexing. Ditto for the millions of electronic transactions that major global retailers conduct per hour.

All those bytes have to sit somewhere.

And Western Digital says it's developed a new device that can really help - with a big assist from helium.

Helium-Filled Drives Are a Blockbuster Breakthrough
The Irvine, Calif.-based company's product is a new disk-drive architecture that's aimed at computer networks and data centers.

Filled with helium gas, the drives can deliver the faster speeds that become more critical each day - and can boost storage capacity by as much as 25% to 50%, Western Digital says.

The firm extolled those features as key to lowering overall ownership costs but declined to estimate how much clients will save by adopting this platform. Western Digital says it will debut the drives by the end of this year.

The helium hard-disk drives - which have already been christened as "Helium HDDs" in tech-sector shorthand - are a major milestone in the rapidly growing field of materials science. It's the first time computer engineers have put helium to this use (conventional hard drives are now filled with air).

And some experts are already predicting a blockbuster breakthrough.

Taking the whole market into account, the tech-oriented research firm IHS predicts sales of 100 million helium-filled hard drives by the end of 2016 - that's just three full years of sales.

Direct comparison of sales rates for new products in the business class computer market are hard to come by. But if the IHS forecast turns out to be correct, then the new helium-drive technology would be a blockbuster - on par with the iPhone.

Apple Inc. (Nasdaq: AAPL) released the trend-setting smart phone in June 2007. Since that time, it has remained in the vanguard of the mobile wave and continues to earn rave reviews.

According to a recent story in Popular Science, Apple has sold more than 228 million units of the pioneering smartphone worldwide in the five years since its launch.

Now then, Western Digital almost certainly won't have the whole helium-drive market to itself.

In fact, I would be surprised if archrival Seagate Technology PLC (NasdaqGS: STX) doesn't at least announce a competing design by the end of this year, or in early 2014 at the latest.

After all, the two firms remain in a disk-drive dogfight. With 48% of the hard-drive market, Seagate holds the top spot. But Western Digital is close on its heels, coming in at 45%.

IHS didn't estimate the value of the overall market; but the two firms have total combined sales of roughly $28 billion.

Technological challenges, patent protections and manufacturing costs (the drives are more-complex - and thus more costly - to produce) could augment Western Digital's head start and allow it to extend its lead, at least for a time.
Indeed, IHS believes the new technology could give Western Digital the lift it needs to take over as the industry leader: A Computerworld story that appeared just as we readied this report for you was topped by the headline: "Helium-Filled Hard Drives May Lift WD to the Top."

Right now, that's just conjecture. But here's what we can say: Western Digital's growth strategy is paying off.

That's because the helium array is the brainchild of Hitachi Global Storage Technologies, or HGST. Lured by Hitachi's high-tech portfolio, Western Digital bought the firm in March 2011 for $4.3 billion in cash and stock.

Fast-forward two years and we can see that helium-filled hard drives offer several advantages. Because helium is one-seventh the density of air, the gas lessens the drag on the spinning disk stack. That's also true of the arms that position the heads over data tracks.

The format also allows disks to be placed closer together. In this array, seven discs will now fit in the space that formerly held only five. And because helium conducts heat better than air, the new drives will run cooler and emit less noise.

Add it all up, and Western Digital seems to have a real winner on its hands...

As science fiction is transformed into science fact, the world advances at warp speed. And by uncovering the innovations that are fueling that transformation, we can discover and offer to you the cutting-edge opportunities to profit - here in the Era of Radical Change.

Source :http://moneymorning.com/2013/01/16/the-fiscal-cliff-deal-just-made-bonds-even-more-risky-in-2013/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014