QUANTUM Message Board - Msg: 2861349

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Technology Stocks : QUANTUM

QNTM 8.460

-12.4%

Dec 1 3:59 PM EST

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To: wallstreetbull who wrote (5946)	12/2/1997 10:31:00 PM
From: William T. Katz	Read Replies (2) of 9124

Sam, my perspective on the fundamentals has absolutely not changed. I had already assumed QNTM would be pressured on disk drive margins. I assumed that the margins would probably be hurt more than described by the Lehman report a few weeks back. I know that DLT will more than make up for that loss and the high-end losses will be curtailed by QNTM's one-time reorganization charge. This is why I continued to accumulate on the slide. I'm essentially all in now ... 100% long and somewhat marginated. I can handle some downside from here but I'm really not expecting QNTM to slip down to 20, especially without any word from management. The thing that has us spooked is the volume of this last decline and the fact that it was QNTM-specific. WDC issued the warning but yet went down much less on % basis than QNTM. SEG was barely touched. And yet QNTM should be the most shielded of the three from low-end drive margin pressures and has a nicely growing DLT business. So there are really two possibilities I see: 1) Irrational panic which fuels more panic, stop orders, and margin calls. 2) Big players got told something. I agree that #2 would be illegal and strange given that QNTM has indeed had opportunities to discuss shortcomings to analysts. The Lehman report, I believe, discussed their directions at Comdex. And from the amount of the pullback, if there was a "leak" it would have to be of a really bad change of direction since DLT is definitely strong. And anything that bad should have been in a public press release ... All I can say is QNTM needs to issue a press release now. They've done it before and I hope they do it again. -Bill

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