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Technology Stocks : Applied Magnetics Corp

APM 1.355

-4.9%

11:54 AM EST

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To: Mark Adams who wrote (11069)	12/18/1997 7:25:00 PM
From: Frodo Baxter	Read Replies (1) of 12298

>There are better shorts available. Name one. The bearish case for APM is that they don't have cash available to finance a transition to MR quickly enough. Available evidence: 1) TFI revenue drying up double-quick (30%, for god's sake!) MR revenue minimal. 2) Questionable book value. Assets are tech properties in Malaysia. Write-downs coming for accelerated end-of-life. 3) Credit facility value has dropped due to depreciation of ringgit. Interest rates in Malaysia are high, as well. 4) Already leveraged with convertible debt offering. Will be difficult (read: expensive) to acquire further financing. APM will not survive 1998 as an indy.

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