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Technology Stocks : QUANTUM -- Ignore unavailable to you. Want to Upgrade?

To: privatesmith who wrote (4277)	10/22/1997 11:54:00 AM
From: Jeff Mills	Read Replies (1) \| Respond to of 9124

Edwin-- I do not think there is a corporation in the world that would buy QNTMs DLT division for $10 Billion outright. It is just not worth that much. You are pricing DLT value at 30 TIMES SALES in your scenerio, not 30 times EARNINGS. Big difference, no?

To: privatesmith who wrote (4277)	10/22/1997 12:12:00 PM
From: PHIL K.	Read Replies (1) \| Respond to of 9124

Edwin said<So, $10.170 billion Market Cap/172.501 million shares implies to me a value of $59 per share just for DLT...look at Q2 '98 Earning Release for a reference for numbers> Edwin, What price do you put QNTM at now including the DD business then? Thx, phil K.

To: privatesmith who wrote (4277)	10/22/1997 1:12:00 PM
From: Z Analyzer	Read Replies (2) \| Respond to of 9124

<<Market Cap yesterday at $39 x 172.501 million shares fully diluted is $6,727.539 billion. DLT Rev for Q2 was $339 million...x30 yields an implied Market Cap of $10.170 billion...just for the DLT business alone. So, $10.170 billion Market Cap/172.501 million shares implies to me a value of $59 per share just for DLT>> Edwin, One minor flaw in your analysis. You forgot to annualize revenues which, by your calclations, would yield a $40 billion market cap or over $200 per share. Unfortuately, earnings are capitalized, not revenue. It looks like DLT earned approx $.35 per share last qtr times 4 to annualize, times 30 p/e is $42 per share. And the $5 billion disk drive business is free.