Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: SamuraiSam who wrote (5396)	11/20/1997 3:14:00 PM
From: still learning	Read Replies (1) \| Respond to of 9124

Ironically, this meltdown may have been the best thing to happen to QNTM, because its DLT is now front-stage and will not be forgotten. People (analysts) had to figure out why QNTM was holding up better than its peers. DLT was an obvious reason, and they have now adjusted their models of earnings and espec valuation to accomodate that as we look forward. When the DD part of the biz recovers -- prob not till mid to even late next year -- then we will se full valuation of all parts of QNTM. W/o DLT, QNTM would be worse off than SEG and WD right now-- exposed atboth hi and lo end, clsoing heads operation after losing money and spinning off to MKE, made the MR transition, but caught between pdt changeover and inventories potentially at risk, and a bad environment for the industry as a whole. That's a receipe for v. low stock price. One could argue (just for fun) that with negative earnings (on DD alone) QNTM would trade in the $8 range it was in before the split (meaning $4-5). So in reality the DLT biz, while not fully valued is much closer to that than meets the eye. Of course, that said, I think FMV for QNTM is about $35-40 by Feb/March, with some possibility of upside or downside. I would be happy to see $50 but do not believe we will get there and do not believe DLT will be valued at $43 shr before I exit this stock in 2-3 years.