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

To: roger held who wrote (4421)	10/31/1997 10:50:00 AM
From: Steve Wagner	Read Replies (1) \| Respond to of 9124

Roger, Why would Quantum sell off DLT and become just another DD manufacturer without a profitable product to give it R&D funds to stay ahead of the competition in other areas? Steve

To: roger held who wrote (4421)	10/31/1997 11:04:00 AM
From: Z Analyzer	Read Replies (1) \| Respond to of 9124

Roger, What do you hear that QNTM may be considering as a solution to their high end problems? Someone said that their 10Q indicated that even the next generation high end looks to be unprofitable. Hard to figure out what went wrong with this program since SEG obviously has still signicant high end margins, even if down from prior levels. Makes you wonder if they should be trying to compete on the higher performance high end drives which require alot of R & D which they may not have the volume to support (lack economies of scale). Why not only play in the low end of the high end (Viking) like WDC where manufacturing efficiencies are most important. It worries me with 10,000 rpm drives becoming more widespread at the high end.

To: roger held who wrote (4421)	10/31/1997 11:24:00 AM
From: Z Analyzer	Read Replies (2) \| Respond to of 9124

<<QNTM better spin off DLT before their DD business totally drags it down.>> DLT at 30 times earnings is worth over $50 per share, at 40 times its worth $70 per share. That means that Quanum's disk drive business is worth MINUS $20 to $40 per share or a NEGATIVE $3.5 TO $7 BILLION. Its a travesty that Quantum shareholders are not reaping the extraordinary fruits of having one of the world's hottest products. If not spin off some DLT shares, at least stop bleeding the company in the high end whare Quantum has never had success through many efforts over the years. The desktop business is clearly good but but they say that a company will be accorded the multiple of it's least desirable business. DLT shareholders can't affortd that and would almost certainly be better off if they literally gave the entire disk drive and heads business away.