QUANTUM Message Board - Msg: 9976743

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Technology Stocks : QUANTUM

QNTM 8.980

+4.5%

Nov 7 9:30 AM EST

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To: Gregory Seward who wrote (8930)	6/5/1999 9:37:00 AM
From: Will Cunningham	Read Replies (1) of 9124

Here's something curious to think about. Quantum preannounced at the end of Thursday. Warburg Dillon Reed places an order for 3 million shares the next day at market open. Perhaps Quantum buys some stock back. Other institutions by large share blocks. Then the Barron's article I just posted appears over the weekend. That's a lot of work to keep this stock afloat and get its story out. Then there's the quarterly earnings, the tracking stock road show, closing of the Meridian deal, and shareholder vote of tracking stock proposal--to hopefully pass by early August. This is a lot of action to consider when investing in Quantum currently. Paradoxically, the storage stock could be valued at $30 and the drive biz at -$13 as the article says and that gives a stock price of $17 for the whole company. Is $17 fair value for Quantum then? Or should I buy into the "new" perception that the two tracking stocks are separate operating companies? It really is semantics since part of the company is making money--and lots of it--while the other part is hemorrhaging. The $17 is also where support showed up on Friday. What to do, what to do! I challenge the participants to put all of these things into objective perspective. It can get downright confusing to follow all the pieces. The arbitrage sounds like the best idea. It's a classical play with a decent premium locked in.

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