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

To: Gary Ku who wrote (10125)	11/3/1997 12:09:00 PM
From: Greg Jung	Read Replies (2) \| Respond to of 12298

Gary, how long have you stopped taking your medicine? -g- Again you come up with these unsustainable predictions. - Where'd you get the 50% more employees idea? More employees will not produce better production yields, nor sell more disk heads. And it will certainly not raise the PE afforded it by the market. One aspect which may lead to a surprise is the tendency to over-estimate the public's appetite for advanced hardware, and disk capacities are one question I have. Always the industry has attempted to make the lowest price new disk size such that it costs about $250-$300. There is a gap at the quite utilitarian size of 1-2 gigs at modest speed - they should cost about $100-$150. A single TFI head could be used in a 1.7gig 3" or notebook drive. Need more disk space? That is the theory that I am questioning here. 1) Generally a single main application is used on a given computer. 2) Support applications that occupy (or eat up) large disk areas are unattractive to load and increasingly difficult to maintain. Too many small applications and the system complexity breaks down the usefulness. So anyway, although MR heads provide access to the high end market, the low-end market may require TFI heads for some time. How much that would be a growth factor .vs. a sustaining cash flow, I don't know. If the low-cost PCs do take off I think they won't grow much past christmas, although they could maintain a permanent market share. Greg