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

To: Rob S. who wrote (4894)	11/12/1997 6:01:00 PM
From: Dale J.	Read Replies (2) \| Respond to of 9124

<<re: Just because Quantum and other stocks reached levels of historically high valuations for P/E, P/S>> Rob, what you say makes some sense for the other dd companies. But you have to remember that the PE of quantum is not based on normalized earnings, but based on a recovery year of earnings and qntm has unusually strong growth of DLT (100% growth). Also keep in mind that DLT is a substantial part of quantum (45% of the bottom line). The 100% growth projections seem to be firm, since we know that qntm can hardly keep up with demand. We have also seen in recent announcements that Top Tier distributors and top tier computer companies (HP, IBM, cpq, Dell) recently expanded their DLT offerings. If you own qntm stock, time is on your side. P.S. Please tell me more about those puts qntm bought.

To: Rob S. who wrote (4894)	11/12/1997 6:02:00 PM
From: SeaViewer	Read Replies (2) \| Respond to of 9124

Rob: QNTM didn't have DLT division historically. The business environment has been changed dramatically. DLT is growing 100% last quarter, and is projected to grow 100% in 1998 fiscal year (ends Mar. 1999) and 50% in 1999 fiscal year. DLT provided $100 million operating income last quarter. That's equivalent to ~$0.40 a share net profit. DLT will quickly become a $2 billion business, and operating income margin is much higher than disk drive business (it was 30% last quarter). You can compare QNTM' price with IOM. IOM has only one product -- zip drive, and it delivered $0.22 or $0.23 per share last quarter. Its growth rate is no more than DLT. But IOM's share closed at $28+ today. If QNTM is fairly valued at $25 - $26, then IOM is way overvalued. The investment community just don't get it that QNTM has such a great product. The QNTM management should go to Wall Street to promote its product. Jeff