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

To: Jeff Mills who wrote (10206)	11/8/1997 9:54:00 AM
From: virgil vancleave	Read Replies (1) \| Respond to of 12298

knowing how crisman is with press statements, for all we know apm could very well have mr heads ready for western digital and that could be the reason for the shift. we already know apm has lower costs/higher margins and better management than rdrt. but of course we will never hear it from the company at least until next earnings which would be too late.

To: Jeff Mills who wrote (10206)	11/8/1997 11:46:00 AM
From: Mark Adams	Read Replies (1) \| Respond to of 12298

To expand on Jeffs statement, here is the relevant section of Barrons Q: How about some shorts? Force: I'd short Applied Magnetics, which makes disk-drive heads. They compete with Read-Rite. In fact, they tried to buy Read-Rite. The company has fallen behind in the state-of-the-art technology, called MR. The bid for Read-Rite was a defensive move, because of their weak position in MR. They missed their last quarter, earning 60 cents a share, versus estimates in the 70s. Read-Rite and the Japanese suppliers are ahead of them. I think the stock can go back to where it was before the most recent rally, and that's hat size. I believe their earnings next year could be zero. Morris: Where is the stock? Force: About 27. Everything is going to be MR by the second quarter of '98, and I just think they aren't going to be there. I'd also short Hutchinson Technologies, which also supplies parts to the disk-drive industry. There's some new technology that could displace what they do. My comments: (long on APM at a slight loss) The MR is an issue, as we know. But check out yahoo re RDRT. They released news that they will be taking a charge to write off TFI production (look for them to be taken to the woodshed Monday) HTCH is also 'slammed' without any real detail- but as most of us are aware HTCH and INVX are both rolling out suspension mechanisms with integrated leads. I don't think we can really say who will capture the market at this point.