Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Z Analyzer who wrote (1441)	11/7/1997 11:44:00 PM
From: Frodo Baxter	Respond to of 9256

>Amazingly, Quantum's IR today stated that the company remains very comfortable with the guidance they provided at the last conference call Yeah, they informally said the same thing in the wake of SEG's disaster(s) as well and delivered. Hopefully they can be goaded to formally issue a press release to calm the waters like last time. But... I betcha if you had called WDC yesterday and asked if there was any change with their guidance, they'd say no too. In order to provide a fair market to all participants, guidance must switch from hot to cold instantaneously, with no warm in between. >In short, it looks as if the delayed transition to MR finally caught up with WDC I don't think it's so much the MR transition per se, as that WDC (like SEG) was a bit slow climbing the density curve. When the occasional supply-demand mismatch occurs, the commodity producers scream bloody murder (Dumping? Didn't Micron try that a few years back?), while the technology leader (in this instance it's definitely QNTM, but probably for not much longer) attempts to drive the migration upward. That doesn't mean they escape unscathed, just less so. The same thing happens in DRAM and microprocessors; the only difference being the delta separating the haves and the have-nots (huge in the case of microprocessors, infinitesimal with DRAM, hard drives are somewhere in between). >To play devils advocate, let me ask you why anyone would pay $23 for WDC's disk drive business when you can buy Quantum for $20 less than DLT tape alone is worth and get their entire industry leading disk drive business for free along with it? Good question. Why don't you write a letter to QNTM requesting that they spin-off either the hard drive or the DLT division? ;)

To: Z Analyzer who wrote (1441)	11/8/1997 4:10:00 PM
From: William T. Katz	Read Replies (1) \| Respond to of 9256

How are you setting the valuation on Quantum's DLT? I'm trying to mobilize even more money to continue buying QNTM down here, esp. if the company formally releases they are not seeing the massive declines in margins that WDC is. I'm reluctant, though, to cover my Amazon short until later this week (after lock-up). Already doubled my QNTM holdings when it dropped below my initial purchase price of $31. Did the IR comments come in a phone call?