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

To: mozek who wrote (4821)	11/11/1997 11:49:00 AM
From: SamuraiSam	Read Replies (1) \| Respond to of 9124

Lehman blurb about QNTM : "We would note that Western Digital and Seagate have the greatest exposure to the HDD pricing weakness in the industry. And while we have already lowered numbers on both vendors, we expect there may be further downside risk to our earnings estimates. Quantum, however, is least exposed to such pressures for two reasons. First, largely as a result of its leadership in the MR transition, the company is focused on higher desktop capacity points which are enjoying both strong demand and more normalized levels of price decline. Second, the company's tape business represents approximately 60% of normalized earnings. This business has been successfully cushioning HDD price weakness. Quantum will be the name to watch most closely over the upcoming weeks. If signs of price aggressiveness at higher capacity points surface, we would question Quantum's ability to meet current earnings expectations. At this time, the company continue to track to prior guidance:" Thats it in a nutshell... SS