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Technology Stocks : Applied Magnetics Corp

APM 1.070

-0.9%

1:26 PM EST

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To: Herb Melcher who wrote (10223)	11/9/1997 1:08:00 AM
From: virgil vancleave	Read Replies (2) of 12298

actually after taking a closer look at the balance sheet, i still feel apm is going to hold its own. may go down but not as much as some of the others. reasoning: apm has a book value of near $10 which is higher than western digital and very near rdrt, higher than seagate and qntm. also there is the fact of their cash position and low debt to equity ratio. apm has over $7 per share in cash accompanied by a low p/e and a low price to sales ratio.the only other company which compares to apm as far as cash and debt levels is qntm with a little over $4.5 a share in cash and a debt to equity ratio of 0.5 (which is higher than apm's). crisman, even though he hasn't made alot of friends in the pr department has done a good job since taking the helm for apm. my opinion is that while there is some downside here, the upside looks much higher. if i were to short, it would be rdrt as they are the laggard but even they are undervalued here. computers have always used hard drives and i really don't see that changing for quite some time. not only that, apm really is not that far behind in mr technology. per the last earnings release they have already qualified some mr heads and plan to get more very soon. QUESTION is WHEN and with the way crisman is we may not know that until next quarter. sorry for the long post, but unless we enter into a bear market, the time to buy the disk drive stocks is when the "blood is flowing" and i feel it already is. my 2 cents worth. i am still long and down only slightly. ps. just as they say that when the "good news" is everywhere you look and in all the papers" it is time to sell it also aplies that when the news is bad and everyone is negative it is time to start picking the leaders for the recovery. this is the normal market cycle in its purest form. just look at the electronics and semi stocks last year in july and august. then look at them now. WOW, just wish i could have bought more.

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