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

To: David Walton who wrote (5091)	11/18/1997 1:50:00 PM
From: Emile Vidrine	Respond to of 9124

One possible explanation for institutional selling is the great profits that were gained since Dec. of 96. Institutional managers are compensated by their % gain. It could be that they are locking in their profits early for 97 and will probably buy back in laste DEC. or after 30 days. Here is a 12 month chart to show the gains in the last 12 months. When you manage a fund, I believe the gains have to be concrete and not paper-gains in order to get your commission-bonus. At 28-30, they are still holding a 100%+ gain. Notice the massive upward volume during the stocks ascent, then a decline and then the end of year selling where volume increases again but to a lesser extent. This is all IMO only. techstocks.com p.s. There could also, to a lesser degree, be some tax lost selling. Emile

To: David Walton who wrote (5091)	11/18/1997 1:52:00 PM
From: Rational	Read Replies (1) \| Respond to of 9124

It could be tax loss sale! The MMs who held it at $43 have to sell it to compensate against gains elsewhere to get tax benefits. Waiting till December when other may sell could be too risky for them. They got an excuse from WDC and so times it to sell now. I am guessing. Sankar

To: David Walton who wrote (5091)	11/18/1997 2:47:00 PM
From: Webb B Blackman Jr	Respond to of 9124

ANYONE, For QNTM to fall like this the institutions must be selling. David, And other institutions but be buying as well. Or there are alot of very rich people in the market that like to spend $1,000,000 or so at a time buying Quantum. I could be wrong, but I would see the recent movement in the price of Quantum as just the opposite. Alot of small investors selling for hopefully a profit and the instututions picking up the stock at very reasonable prices. I have to wonder about the mental abilities of a person who says things like "everyone is selling". Remember that there is a buyer for every seller. I wish I did know the reason that QNTM drops on bad news from WDC. --- webb ---

To: David Walton who wrote (5091)	11/18/1997 2:56:00 PM
From: Dale J.	Read Replies (2) \| Respond to of 9124

I agree with every one of the preceding explanations on why qntm's stock is down. Investors sell if they think the price will be lower tomorrow. When WDC feels some pain, the investors sell qntm because they know/think the price will decline. They may have every intention of buying it back when the market becomes more firm. It is a common investor precept to buy low and sell high. But qntm is giving us a first hand demonstration on how an investor's mind actually works. When the price declines there is a natural tendency to sell out of fear of losing, and when the price goes up the there is a natural tendency to hold and even buy more. Buy low and sell high is indeed easier said than done.

To: David Walton who wrote (5091)	11/18/1997 6:43:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 9124

One of the often quoted statistics onthis thread is that Quantum's DLT "is going grow at 100% this year". During the conference call management made it clear that they did not think it was reasonable for analysts to forecast more than 60% growth for the DLT business. Hey, I'm not complaining mind you, 50%-60% growth is a great number as the DLT business has grown to a larger percentage of overal sales and a very nice percentage of profits. But let's get our facts straight and try to be objective as we can about what's shaping the company's performance. By historical measures, Quantum looks reasonably, but not cheaply valued at around 30-35 based on current earnings, (and until fears about price errosion and Asian problems subside that's about all you can expect the market to focus on). At 40-45, where it seems many people are convinced Quantum should be at right now, Quantum is at higher than historical valuations. If you believe in the company's products, markets, management, etc. then you should just take this as a great buying opportunity. QNTM could pop up to the low 30's or it could move down to the mid-high 20's - that range is well within historical norms.

To: David Walton who wrote (5091)	11/19/1997 6:23:00 AM
From: Alan Hume	Read Replies (1) \| Respond to of 9124

Hi David, "For QNTM to fall like this the institutions must be selling" I suspect that what we have been seeing for quite some time is computer generated trading by the institutions. In other words, if a competitor in that market segment makes a negative earnings announcment they reduce their exposure they have in the market segment. These sorts of trades are instigated without the human influence I believe. I could be wrong, but this is my understanding. REgards Alan