Michael,
I don't know. Either they are going out of business or this is a great buying opportunity (one of many in this stock over the years!<g>). It may be linked to an announcement by HP that they are shipping qualification models of LTO-2 to OEMs, and hope to have qualifications over by the end of the year. DSS was even quoted in the article! Pretty amusing, I suppose. I can't believe they aren't buying stock at these levels, even if its just 10 or 12 million shares. They have plenty of cash for that. At least if they have resolved that lease covenant violation that they spoke of in that last CC (which I think amounted to about $25m or so, no huge deal, but still...).
I got rid of the earlier batch I bought at 2.30 with a nice profit at 3.2. I am considering buying some more here, but have not jumped in yet. May move just before their earnings come out.
I did speak with an old friend of mine who uses DLT. His company has around 12 or 13 of them. They bought a SDLT320 last month to play with and are pleased with it. They also have AIT and a little LTO, but are mostly DLT and have not plans to move, using the "If it ain't broke, why fix it?" rationale, especially for backup and archival (they are in a business which has legal as well as prudential demands for both). However, he does say with a nervous laugh that he never wants to have to restore his systems, which are pretty substantial. It is his opinion that Quantum is getting knocked by the market (that is, tech spending freeze) more than anything, but he will be going to a conference in a few months where they will be addressing tape specifically, and will talk to me more afterward.
If I hear anything more, I'll let you know.
Sam |
