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Technology Stocks : QUANTUM
QNTM 9.380-4.7%Dec 12 9:30 AM EST

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To: Tmanquinn who wrote (7063)1/16/1998 10:58:00 PM
From: Stitch  Read Replies (2) of 9124
 
Vincent;
It may be a bit early to buy HTCH. They are expected to post a loss of .34 ( www.firstcall.com ) in their first fiscal quarter (reporting on the 20th I think) and there is some potential for a downward surprise IMHO. Their new product, called TSA, (alluded to in GM's post) is still having yield difficulties and is costing them more to build then they can ship it for. On top of that they are sitting on unused expansion space and it isnt clear to me how long that may go on.

HTCH is a good solid company whose industry is having the blues at the moment. I don't see any reason to buy it now but would choose to wait a bit till all the bad news is digested. You may be able to pick it up in the 15-17 range. Still, at a current PE of 10+change against an historical average of 34 I can understand the attraction. But for my money I would wait it out a bit.
Best,
Stitch
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