Sam: thansks for the detailed report. I had taken notes but just didnt have the patience to write down the whole thing last night.
The only reason why QNTM is a buy at this price is the DLT business.
Believe me guys, for a business that has gross margins at 45% and net operating margins at 25%, it would trade typically at a PSR, or price to sales ratio of 3-5. Thats again conservatively speaking. DLT should also get the "premier premium" for being the market leader. A PSR or 3 lets say gives 1.6B x 3 = 4.8B market cap for DLT. Thats $30 for DLT alone. If you look at the PE numbers, it could come out even higher, around $40. Thats conservatively speaking. When growth stocks with strong margins get the attention of fund managers, typically a 2X premium can be awarded (look at DELL, MSFT). That means sky is the limit. Tracking stock thing is the brightest idea QNTM management has had in a long time. It will make it easier for people to avoid the disk drive business, which I think has a very good potential, myself.
BOTTOM LINE, wait a couple of months, see the stock go into 30's, if not higher.
Kudos to QNTM management for giving all the detailed numbers last night on the seperate businesses. That definitely will help the analysts model their numbers and come up with the valuation models. Dont see any upgrades/downgrades yet! Analysts still crunchin' ? May be they will downgrade here so they can accumulate more shares quietly.
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