>LK, I'm sure you've done an exhaustive study on Quantum and the planned tracking stock. What do you think?
I wish they did this a couple years ago when the stock was at 40 and DLT was growing 100+%. I could have gotten out at 60.
Instead, intervening events have made me a, ahem, "long-term investors."
Still, I like management. They can't manage the stock worth squat, but they know how to run their business. The tape stock should fetch anywhere from 20 P/E all the way up to EMC-type valuations. The drive stock will be interesting. Shouldn't the #1 supplier of desktop drives have at least the enterprise value of the worst competitor in this business, WDC? Especially considering that this "unimpressive" business generated more than 200 mln in cash flow the last year? I think so. I reviewed WDC's presentation from H&Q. It's kinda pathetic, filled with hype about how well they're executing, but noticeably absent was any discussion of their operational performance. The bleak, stark numbers I posted a couple days ago tell the real story. Recently, they've been quoting www.storagereview.com in the same breath as IDC and Data Storage. Hahaha. Maybe Quantum should quote some of the lovin' I'm sending their way.
So yeah, I'm willing to wait another year for my 60 price target. And I'm not going to wait for the stock to hit 15 before I buy. I'm more than happy loading up at these levels. And don't forget, industry players can still manage to delight with a surprise consolidation. Maxtor looks like a real tasty morsel to me. |
