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

To: Rational who wrote (5438)	11/20/1997 8:19:00 PM
From: jkb	Respond to of 9124

Forgetting about the GS's recommendation and great performance today (for at least a moment) - I believe there were several messages into QNTM's IR today. Did they respond? -Jay

To: Rational who wrote (5438)	11/20/1997 8:19:00 PM
From: scott harrison	Read Replies (2) \| Respond to of 9124

Any comments on this? NEW YORK -(Dow Jones)- Disk-drive parts makers StorMedia Inc. and Read-Rite Corp. have been left in the lurch following a bankruptcy filing by a delinquent customer, Micropolis. Micropolis filed under Chapter 11 of the U.S. Bankruptcy Code in a federal courthouse in Los Angeles on Nov. 12, a court contact said Thursday. Price Waterhouse has been hired to carry out the liquidation of the hard-disk-drive maker, bought last year by Singapore Technologies Group. Details of the court filing weren't immediately available. Neither Micropolis nor Singapore Technologies could be reached for comment. Micropolis's liquidation comes at a time in the disk-drive industry when consolidation has shrunk the field of competitors and placed more pressure on companies to remain profitable. "The drive industry has consolidated over the last 10 years," said Patrick Tenney, analyst with BancAmerica Robertson Stephens. "There was a time when there were dozens of companies. Now the top four have most of the industry business." Seagate Technology Inc. (SEG) is the largest maker of computer disk drives. Other major players in the industry are Quantum Corp. (QNTM), Western Digital Corp. (WDC) and International Business Machines Corp. (IBM). Milpitas, Calif.-based Read-Rite (RDRT) said Wednesday that it will take a charge of up to $15 million for the fourth quarter ended Sept. 30 to write off the delinquent Micropolis account. The company will restate its fourth-quarter earnings to reflect the charge. Read-Rite, which has been suffering amid reduced demand and pricing pressure on inductive thin-film recording heads, last month reported fourth-quarter net income of $30.5 million, or 61 cents a diluted share, after a charge. Before items, the company's profit came to 65 cents a share, two cents short of analyst estimate. Read-Rite said it will take actions to recover payment from Micropolis. For the current quarter ending Dec. 31, Read-Rite said Micropolis would've accounted for less than 1.5% of net sales. StorMedia's (STMD) stock has been hammered in the past two weeks amid rumors of Micropolis's liquidation. In a report last week, StorMedia said it had entered into a three-year agreement with Micropolis. The third-quarter 10Q filing said sales to Micropolis accounted for 19% of StorMedia's thin-film business for the nine months ended Sept. 26. Copyright (c) 1997 Dow Jones & Company, Inc. All Rights Reserved.

To: Rational who wrote (5438)	11/21/1997 12:08:00 AM
From: Dwight E. Karlsen	Read Replies (1) \| Respond to of 9124

Sankar, you're not the only one that missed out on buying at 26 yesterday. But there's no way to predict when some guest on CNBC will start touting a stock. I have seen people here at SI who jump into a stock just for the "CNBC effect" for "a point to a point and a half". Plus the story gets more exaggerated every time. I didn't see the CNBC GS/QNTM episode today, but the story changed a little with every post on this thread, regarding what the GS analyst said. First it was "DLT alone is worth $50, true value of the stock is north of $80". The latest person posted that GS said their target price is $80. I'm not arguing with the figures, but there's a difference between the two statements. Lehman Bros. has been the single biggest bull on this stock for most of this year, stating in each report "Quantum remains our single best investment idea", or words to that effect. And yet, last I checked, Lehman's 12 month target was still $43. Is Goldman Sach's official 12 month target price on QNTM $80? I wonder. But I doubt those who bought for the CNBC effect will be waiting to find out if QNTM goes to $80. I'm going to wait a few days and see how the stock price shakes out. I still believe there is big immediate overhead resistance above $31, from that huge volume sell-off from $35 down to $30. In fact, the overhead supply extends all the way up to $43. In any case, the stock isn't going to be above $40 until next year, IMO, due to uncertainty surrounding drive pricing pressures (ie, how bad will it get). DK