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

To: Rational who wrote (5750)	11/26/1997 10:17:00 PM
From: Michael Burry	Respond to of 9124

Has everyone seen the Quantum story in the latest Dec 1 Forbes? "Quantum scarcely knew what a steal it was getting when it bought a business from DEC." If this has already been brought up, sorry in advance. Micahel Burry

To: Rational who wrote (5750)	11/26/1997 10:27:00 PM
From: Vanni Resta	Respond to of 9124

Well, yes, one sure way to get at the value of the tape division would be to spin it out. I wouldn't say the DD division is doing that poorly though. I also do not think there are any plans to divide the company. It is a good suggestion, though. Except that, true, managers do not like to lose part of their domain. Happy Investing! Vanni

To: Rational who wrote (5750)	11/27/1997 10:10:00 AM
From: Z Analyzer	Read Replies (2) \| Respond to of 9124

There are several alternatives to a pure spin-off of DLT which would accomplish the same end of allowing the market to value DLT alone. 1) They could spin off only 10% of the shares and retain 90% internally. 2) They could issue "rights" to DLT similar to what General Motors did with EDS and Hugh's Electronics when they finally realized that the market WOULD NEVER include the full value of those subsidiaries in GM's share price. 3) They could issue DLT rights equal to only 10 percent of DLT. It is almost inconceivable that Quantum management could find the third alternative very undesirable. It should be easy to arrange given Quantum's existing debt structure and it could unlock a very substantial portion of Quantum's $4 billion in missing market capitalization.