QUANTUM Message Board - Msg: 2793436

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Technology Stocks : QUANTUM

QNTM 8.290

-4.9%

3:58 PM EST

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To: Frodo Baxter who wrote (5469)	11/22/1997 2:03:00 AM
From: Alan Hume	Read Replies (1) of 9124

Hi Lawrence "Why should QNTM sell off the DD business when it can spin it off to its long-suffering shareholders." Firstly, although QNTM's desk top DD biz may be in fairly good shape now compared to its competitors, the sector has always been renown for short cycle times, high R&D costs, fierce competition and razor thin margins. In a word, low ROI. I don't see that situation fundamentally changing. Secondly, a divestment rather than a split off would put a lot of cash at MB's disposal. He may want this for a further aquisition, or maybe for a complete take over of Terastore, or both. Remember MB is a very astute business man and has got QNTM where it is today through far sighted aquisitions. Precisely what Haggerty and Shugart seem to have neglected. Thirdly, it would seem to me to be most logical of MB to concentrate the companies capital in the areas promising the highest ROI. And I don't see that being DD which I see becoming an increasingly higher risk. Regards Alan

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