QUANTUM Message Board - Msg: 4189734

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Technology Stocks : QUANTUM

QNTM 7.830

+24.5%

3:59 PM EST

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To: Frodo Baxter who wrote (7762)	4/24/1998 4:08:00 AM
From: shane forbes	Read Replies (2) of 9124

Re: Quantum has... voluntarily cut back production and pulled in inventory. My guess is that if they did not do this and instead continued to produce drives and stuff the channel, instead of marginal profits, we'd be seeing the same monster losses as WDC and Maxtor et al. So pick your poison. On the "pricing leader" comment: If they played price leader for a while, again not an easy thing esp. when they don't have the freedom to do so. Bet they would have loved to be pricing leader. Quality is one thing but when people are willing to forego some of the quality for 30-40% reductions in price we have a problem. My guess also is that it depends a lot on where their components come from. Partly because of the Asian currency devalutions, other companies (for example those w/o a vertically integrated structure) with component sources in Asia or direct production in Asia, would have been able to compete favorably on price. (Wild ass guess on QNTM being more vertically integrated than say a WDC?) However let me caveat by saying that I'm only guessing here. I don't know the finer points in the players here at all. Just hazarding wild ass guesses. Shane.

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