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Technology Stocks : Applied Magnetics Corp

APM 1.260

0.0%

Dec 16 3:58 PM EST

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To: Mark Adams who wrote (10610)	12/5/1997 12:34:00 PM
From: Rational	Read Replies (2) of 12298

Mark: The CEO (I think a WS finance guy) knew that TFIs were much more profitable than MRs. Thus, (in the best interest of shareholders) he continued to produce the TFI as long as he could, while simultaneusly developing MR for volume production. This is a very solid and shrewd strategy. If the WS analysts are suspicious that APM has the capability to mass produce, they must be mistaken as the 10Q very clearly states that APM has mass produced MRs. [The mix of TFI:MR at 94:6 this year was obviously the best, given the unit profits; anyone who has studied and practiced production planning and control should know this!] I think the CEO knows how to make hay while it shines, while getting prepared (with a strong cash position) to transition into the MR technology, while RDRT has taken charges. This suspicion may have created a buying opportunity for many at these levels. The balance sheet is strong, cash position is strong and they are ready to mass-produce MR heads. Sankar

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