Applied Magnetics Corp Message Board

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Technology Stocks : Applied Magnetics Corp

APM 1.640

+5.1%

Nov 19 3:59 PM EST

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To: Don Earl who wrote (10934)	12/10/1997 4:59:00 PM
From: Jadrew	Read Replies (3) of 12298

Good Purchase: Don, a lot of the talk on this thread has been negative "I bought this stock at $30-40, and now its ...., and I'm pissed at Crisman etc." Fact: this is a cyclical industry, with big swings in earnings. Six months ago this was a $60 stock with forward earning projections of $6+ per share. Where do we stand today: 1) Share price at $13.50, market cap approx. $300 million 2) Share price off 80% from its high 3) Every analyst downgrading APM (these guys are great Monday morning quarterbacks). 4) Institutions getting this loser off their books 5) Market in transition to MR (requiring capex) 6) Market in Oversupply in inventory and capacity 7) Forward earnings (next quarter or two) projecting losses Okay, what should the "prudent" investor do. SELL SELL SELL.... Why ? This industry (DD) is hitting a low point and stock prices reflect this gloom. I my opinion your buying is the best risk/reward strategy. APM has enough cash to "invest" in MR capacity. So we shouldn't see dilution or short term liquidity problems. I'm assuming there still will be a market for storage products (DD) into the foreseeable future (not withstanding DVD and the "network computer"). When the cycle turns up (as its done in the past) your investment may pay off handsomely. I did the same thing a number of years ago with Quantum. Lets all look beyond the next quarter. Good Luck (I'm long RDRT, sitting back and waiting also)...

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