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Technology Stocks : Applied Magnetics Corp

APM 1.120

+2.8%

Dec 30 3:59 PM EST

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To: Thomas George Warner who wrote (10366)	11/16/1997 2:12:00 AM
From: Jonathan Bird	Read Replies (2) of 12298

<<I do not want to sound negative on your post>> Thats cool. <<but you are making a lot of unsubstantiated statements, some of which contain the phrase "I don't know", hardly a basis for educated investing.>> Well the only statement I made was that the profit margins are on the way down and are expected to be half what they were last year. In fact the profit margin for Q4 was already down. And APM still isnt paying taxes so these figures are inflated. Crimsan has given guidance for reduced earnings next year. So I guess this statement sustantiated by the CEO. As far as R&D, I said.. <<So APM has more R&D. Is that unusual considering how they are just entering into a product transition? How much was RDRT's R&D at this stage of there own transistion? I don't know, but probably much higher.>> I meant this as a question rather then a statment. I was hoping those on the thread could shine some light on the subject. Thanks Brian. <<Good investors always look for technology stocks that invest a minimum of 7% of sales into R&D.>> How do you take into account cases where technology is licensed to save on R&D? And also research partnerships that help to share costs? Both of these circumstances apply to RDRT. And you have to look at how this R&D is applied. APM spent money developing 1.7 TFI. A technology that looks like its going to have only 2 Qtrs of life. Thats 2 QTRs too long some are now saying. <<If you would take the time to do a little basic research you would find that a comparison of the fundamentals of APM and RDRT over the past 5 years tells a definite story.>> I've done enough research to know that APM has lost money all but one of the last five years. While RDRT has made money all but one. I'm not sure why you would bring that up. Anyway like I said im looking forward not back. I can only make money in the future. I think this is especially important to keep in mind in the tech sector where companies and strategys must be constantly reinvented to keep up with rapid changes. APM was a great TFI production company. But will they be a great MR company? Theres a good chance. But when? Not for at least 2 more QTRS. Thats a long time in the tech sector. I hope when APM gets there, there will be some customers left over. I appreciate your point of view. I've got a to learn, I admit that. I hope if what in saying makes no sense you'll set me straight. I'm not here on SI cause I know it all. Quite to the contrary. Jon Bird

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