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Strategies & Market Trends : APMP (formerly APM) -- Ignore unavailable to you. Want to Upgrade?

To: tom pope who wrote (8336)	11/9/1997 3:50:00 PM
From: appro	Respond to of 13456

from Barron's >>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.<< Barron's cover story: "Tech Stocks - Time to Buy? part 1" interactive.wsj.com