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Technology Stocks : ADFLEX SOLUTIONS ( AFLX ) -- Ignore unavailable to you. Want to Upgrade?

To: Kent Sarikaya who wrote (182)	11/20/1997 6:51:00 PM
From: Amir Desai	Respond to of 718

More good news after the bell, especially if you subscribe to the Technology Trickle Down theory like I do. AMAT beat estimates for the most recent quarter and showed strong top line growth. More than that, I believe it proves that SE Asia is not having the terrible impact on tech demand as we once thought. Another interesting note is that the boom of the $1000 PC only means more overall PC's shipped, more hard drives, more zip drives, etc. I believe that SEG is the only drag on AFLX right. SEG stuffed the hell out of sales channels, stocked up inventory and expected demand to outstrip manf capacity. As we well know, they were wrong. I don't think a slowdown in orders for SEG is a reflection on PC demand. Why, SEG is still shipping more absolute units as is WDC in the low end densities. SEG built up inventories and realized that if they didn't cut prices and blow in out the door ASAP, that they would be left screwed even more when MR drives took over the market. What does this all mean: 1) price war in the 1-2.5 GB desktop drives 2) fewer new units produced by SEG as they oush out old inv. 3) WDC still shipping increasing total untis as is QNTM. 4) Give this until June to clean up and AFLX could significantly beat 2nd estimates driving the stock into the the high $30 range.