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

To: SeaViewer who wrote (4897)	11/12/1997 8:06:00 PM
From: Rob S.	Respond to of 9124

Those are nice arguments for why Quantum should be considered differently than it has in the past. Some institutional and other influential investors may even agree with you completely. But when we get into a market spin like this and they go back to the leading valuation reports and models, those figures and reports don't say "Over the past 5 year Quantum has had an average P/E of 10 and an average P/Sales or .52, but now things are different, so ignore the research report we charged you for and only consider valuations looking forward." Unfortunately, that's not how things work. When investors run scarred they often sell until the valuations reach the lower end of historical norms. Investors don't realy know how much Quantum and other companies will be effected by the Asian monetary crisis and inflationary wage pressure. That element of doubt makes them discount future projections for valuations. Quantum is now at a very fair valuation based on current earnings and looks good going forward. Once the fears subside, which I hope they soon do, the stock should recover nicely. However, Quantum and many other tech stocks could continue to slide down considerably more than the current level. My guess is that we are testing the lows established during the recent crash and will start heading up soon, but I won't be a strong buyer unless it's at firesale prices or it's when an up-trend gets established.

To: SeaViewer who wrote (4897)	11/13/1997 6:07:00 AM
From: Z Analyzer	Read Replies (1) \| Respond to of 9124

<<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.>> Quantum management has been doing this. Maybe this fiasco will help them understand that its like trying to teach a pig to sing. Analysts know the DLT story and always give it hinorable mention, but the bottom line is that Quantum is regarded as a disk drive company and that is the kiss of death. The truth is that a simplistic portfolio manager who knew nothing of DLT and followed the lemmings out is in better shape than those who understand the company. Maybe mgmt will stop hoping for the market to change its spots, accept the reality and take the positive steps necessary. After this, even a believer in DLT would be scared away because of this sickening volitility when DLT should have been impacted in no way