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Technology Stocks : QUANTUM
QNTM 7.000+1.3%Jan 12 3:57 PM EST

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To: Stitch who wrote (7078)1/18/1998 12:08:00 AM
From: Gottfried  Read Replies (2) of 9124
 
Stitch, >I actually am not too bullish on HTCH's ability to get over a buck for TSA.<

Neither am I, nor are they. At least that's what I got out of the
Forbes article in a round-about way. (They said they expect TSA
to constitute 75% of shipments and 85% of revenue. If the rest
of the revenue comes from 60 cent suspensions,
then $0.60x25 = .15R = revenue from old suspension
Tx75 = .85R = revenue from TSA suspension

(T=price of TSA, R= total revenue)

Solve the above for T (price of TSA) and you get $1.13
So even the typically optimistic company estimate says
they'll only get $1.13 for a TSA suspension. That is bound
to shrink when the rubber hits the road. The other assumption
I made is that suspensions are their only business. Is it?
BTW, they are supposed to have 70% of the worlds suspension
business.

GM
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