QUANTUM Message Board - Msg: 2823456

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Technology Stocks : QUANTUM

QNTM 10.60

+5.1%

Dec 9 3:59 PM EST

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To: still learning who wrote (5717)	11/26/1997 1:07:00 PM
From: Rob S.	Read Replies (1) of 9124

As much as I hate to admit it, Vanni's basic point is correct to a significant extent. The HD drive sector has average historical multiples of around 9-12 with momentary lows as far down as 5. Quantum's own range had recently moved to the upper-end of it's historical range. The market tends to discount forward looking earningsw projections for DD sector stocks because earnings are so volitile due to past experience of rapid earnings errosion caused by over-supply driven price competition. Quantum's fundametnals have been improving nicely over the past several quarters and their diversification should cause them to be valued differently than a purely historical valuation model. Considering the historical record, the nature of the DD business, and Quantum's great strategic position and diversification, I think that QNTM is now undervalued against current earnings and greatly undervalued against probable future earnings. The FUD factor will probably not be cleared out completely until sales and earnings are better understood. I am holding/buying at this time in anticipation of very nice appreciation in the coming months - by Feb of '98.

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