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

To: Rob S. who wrote (5391)	11/20/1997 2:06:00 PM
From: Dale J.	Read Replies (2) \| Respond to of 9124

Reuters, Thursday, November 20, 1997 at 13:42 LOS ANGELES, Nov 20 (Reuters) - Shares of Quantum Corp rose more than 12 percent on Thursday on confidence that the company would be less volitile than its peers in the increasingly competitive disk drive market. Shares of Quantum gained 3-11/16 to 29-15/16 in afternoon trading on Nasdaq. The stock rise on Thursday came despite negative analysts' comments on Wednesday. Hambrecht & Quist analyst Todd Bakar on Wednesday cut his rating on Quantum to hold from buy while Gruntal & Co analyst David Takata cut his earnings estimates on the stock. Both analysts cited concerns about the disk drive sector following Tuesday's announcement from Seagate Technology Inc (NYSE:SEG) that its second quarter results would be weaker than expected. But analysts said Thursday that Quantum may not face the same worries as Seagate. "Quantum stock has been slaughtered for the last week or two and people have probably figured out that this is the company which is least likely to be hurt in what is clearly a downturn in the industry," said analyst John Rossi of BancAmerica Robertson Stephens. Quantum is less reliant on cheaper disk drives where there is intense price pressure, it has an extrememly profitable high-end tape storage business and has completed the transition to magneto-resitive head technology. Seagate's attributed its weak results to price pressure in low-priced disk drives and increased competition for expensive disk drives where Quantum and others are attempting to erode Seagate's market share. In recent weeks Quantum's shares have fallen steadily. As recently as September 29 Quantum traded at 42-7/16.