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Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?

To: Richard Haugland who wrote (10078)	10/30/1997 11:20:00 AM
From: Herb Melcher	Respond to of 12298

Re possible favorable effect of SE Asia currency devaluation on APM. I agree with your post, but wouldn't this potential favorable effect on APM have been known by APM management when it very recently "guided" analysts forecasts for next several quarters and for next FY sharply downward? Do you think they were ignoring this in their guidance? If so, this casts further doubt on credibility of APM management.

To: Richard Haugland who wrote (10078)	10/30/1997 1:46:00 PM
From: tom pope	Respond to of 12298

richard, you wrote >>Despite this, APM will likely be hit just as hard as some of these other companies; however, one would hope that its already low trailing P/E (<6) would give it some immunity from falling much further. These statements and the fact that probably supports it in regards to the semiconductor equipment companies at least makes me quite worried for almost all tech stocks, including APM and WDC, which also assembles a lot of its dd in Asia.<< and monsec wrote >>And the companies that make machinery for the semiconductor factories sell a large percentage of their products into the Southeast Asian market. Companies like that are much more vulnerable to the recent economic changes.<< it seems to me that monsec's statement is only correct for companies that export equipment for products manufactured in southeast asia whose end users are also in southeast asia. companies dealing with southeast asian enterprises who in turn re-export their products out of the area should not be impacted at all by the current turmoil, since they are relatively independent of internal demand. in fact their lower cost structure resulting from devaluation (local currency costs, dollar denominated export contracts) should be a major plus. tom