QUANTUM Message Board - Msg: 2515714

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Technology Stocks : QUANTUM

QNTM 6.190

-3.7%

Jan 22 3:59 PM EST

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To: Z Analyzer who wrote (4272)	10/22/1997 11:47:00 AM
From: privatesmith	Read Replies (3) of 9124

"<<Michael Brown stated that the analysts wanted to price Quantum at a P/E of 30 due to the explosive growth of the DLT. His response, "Go ahead.">> This quote is rather misleading. One of the questions to Michael Brown picked up my line about DLT at 30 times earnings being worth more than all of Quantum today. He asked whether Quantum might do something to increase DLT recognition (maybe he meant spin off DLT). Brown answered that it was up to the money managers to bid Quantum up to that valuation (or something to that effect). He did not metion anything about spinning off DLT as a possible solution." My ears picked up something entirely different...I heard the analyst comment that 30x DLT (I'm reading in Rev reported for Q2) was greater than Quantum's market cap...and, then the Q was put to Brown about what he was going to do about it...to which I heard the answer that the info was out there and it was something for analysts to do...my interpretation of what I heard! Market Cap yesterday at $39 x 172.501 million shares fully diluted is $6,727.539 billion. DLT Rev for Q2 was $339 million...x30 yields an implied Market Cap of $10.170 billion...just for the DLT business alone. So, $10.170 billion Market Cap/172.501 million shares implies to me a value of $59 per share just for DLT...look at Q2 '98 Earning Release for a reference for numbers...Do your own math; and, correct mine if I'm in error. And, remember I heard thngs differently and may be entirely incorrect about what I heard and the interpretation of what I think I heard!!!!! This is a hotstock...and, COULD BE HAZARDOUS TO YOUR WEALTH...DO YOU OWN RESEARCH AND ROW YOUR OWN BOAT!

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