Bill Wexler's Profits of DOOM Message Board

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Strategies & Market Trends : Bill Wexler's Profits of DOOM

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To: Bill Wexler who wrote (895)	6/4/1998 11:26:00 PM
From: Bill Wexler	Read Replies (2) of 4634

A warm welcome to Quantum (QNTM) to the DOOM INDEX (tm) at 21 After suffering precipitous falls in their stock prices, investors in the mass storage manufacturers are hoping that we've hit bottom. I don't believe we are anywhere near the bottom, and I feel that these investors are making the same mistake the IOM-aniacs made when the stock hit 8 a share - assuming it couldn't go any lower - right before it proceeded to drop another 30%. I feel that SEG, WDC, and QNTM in particular still face significant downside risk. The problems which have hammered revenues and vaporized earnings have not gone away. In fact, they are getting worse. Boxmakers will continue to put enormous pressure on component manufactures to lower prices. Mass storage is particularly cutthroat and business will suffer greatly in the foreseeable future. I believe that SEG, WDC and QNTM will all trade in the single digits. Either we will have to see some consolidation and/or massive cutback in supply. In either case all of these stocks continue to be excellent shorts. I consider QNTM the most vulnerable. Look for another gruesome quarterly report in June/July.

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