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

To: semi engineer who wrote (5347)	11/20/1997 11:25:00 AM
From: Rob S.	Read Replies (1) \| Respond to of 9124

Wrong. Hope your not short. Quantum will participate in the exploding growth of the sub $1,000 PC sector that will help to dosplace market share of WDC and SGA. IMO, Quantum will about make up for what they lose in price by what they are gaining in quantity in the low-mid range DD sector. The DLT business will more than carry them through the competitive price crunch of the first half of '98. In corporate America, over 1/2 of all PCs are Pentium 90 class, 4X86s or less. These systems are not well equipped to work with the internet, corporate intranets, or multi-media networks. Besides that, they are a maintenance headache to upgrade and keep running. The sub $900 NC and sub $1,000 PC products with built-in 10/100 network interfaces and network management software will ignite a new round of corporate buying that is going to be more rapid and sweeping than any corporate buying spree in history. The cost points and maintenance savings are just that compeling. It looks like we are seeing a shift in the mood for QNTM today - my guess that yesterday was a key inflection point might just prove to be right.

To: semi engineer who wrote (5347)	11/21/1997 7:00:00 AM
From: Alan Hume	Read Replies (2) \| Respond to of 9124

Hi Semi, "It is very possible that QNTM is that rare exception that defy the market but market is rarely wrong" Semi you list several interesting points in your post. First of all, the PC market is growing at an av 20% pa. With the exception of Big Foot,most drives are gaining in the number of platters and hence heads, so the head market should be growing at more than 20%. What I think is happening is that a) the yields of the head makers is getting better, and b) off shore DD vendors such as Fujitsu and Maxtor are gaining market share. I don't think that QNTM will remain totally immune from all this, but their Big foot gives them a huge advantage with its price and capacity ratio. At the end of this qtr I believe that the profit margin contribution of DLT will exceed 50% of the total fot the first time, and its contribution will continue to increase percentually. Logically, give it a max of 3 years and Michael Brown will sell the DD side to MKE, and invest the cash in further DLT developments. You may ask what I have been smoking, but think about it; it's very logical...... Alan