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

To: Dale J. who wrote (4896)	11/12/1997 7:52:00 PM
From: Rob S.	Respond to of 9124

Quantum didn't buy puts, they have, in the past, sold puts. That's what the CFO said during the last conference call in response to an analysts question on whether Quantum would be doing a stock buy-back. Selling puts is similar in many respects to buying stock back, but it doesn't send as clear of a message to the markets. It is an excellent strategy as far as getting the most bang for the buck. Quantum can see that investors are overly worried right now and that put premiums are very high. In times like these it makes sense to reel in all those fish floundering around - easy pickings if you have confidence that the overall trend of sales and earnings is positive. I'll check with my collegue to see how he remebers the details of their put strategy or has any notes. Quantum's DLT growth is not expected to continue at 100% - the company said that they expect at least 50% growth next year but that they did not expect it to continue at the same pace as last year. Obviously the business has grown to be a much larger segment of QNTM's overall business and of the market segment than it was a year ago. As I remeber it, one analyst asked if 60% growth might in-line as a figure to plug in his model and Quantum's response was that that was in-line.