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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: JRI who wrote (7286)	7/31/1999 8:29:00 AM
From: John Carragher	Read Replies (2) \| Respond to of 17183

Barron's review of Quantum mentions emc in the detail. Quantum will cease trading on the Nasdaq after Tuesday. The company's two pieces will be represented by tracking stocks listed on the New York Stock Exchange: Quantum -- DLT & Storage Systems Group, and Quantum -- Hard Disk Drive Group. These two issues began when-issued trading last week. Quantum holders will get one share of the storage system tracking stock and one-half share of the hard-drive stock for each Quantum share. The Quantum situation was highlighted favorably in this space June 7, when Quantum traded around 19. Quantum subsequently got as high as 27 but then pulled back, falling 2 7/16 to 22 5/16 last week amid concerns about the storage business's growth prospects. The investment case for the storage systems tracking stock is that it amounts to a mini EMC at a far cheaper valuation. Quantum's storage business has benefited from the burgeoning amount of data created by the Internet and computer networks. Quantum is the leading maker of backup storage systems. The storage-systems tracking stock ended last week at 19, roughly 13 times projected profits of $1.50 a share in the current fiscal year ending March 31. The storage business in reality may not be an EMC, but its multiple is a lot lower than EMC's 60 P/E.