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

To: William T. Katz who wrote (5804)	11/29/1997 1:16:00 PM
From: Rational	Respond to of 9124

William: On the general market conditions, South Korea has stopped bleeding and all other Asian markets have stabilized. Especially, Japanese market looks very stable. A lot of stocks in the US are over-valued and will crash. But, stocks that are making consistently strong earnings will do well. There is a lot of valid optimism about the US economy: zeroing of US budget deficit, lowest interest rates, lowest unemployment, lowest inflation getting better due to deflation induced by currency devaluation everywhere. The whole world is getting highly capitalized, with the rich getting richer. Even the wealthy Asians count their income (mostly from exports) in dollars, sterling pounds, marks, etc. The devaluation has tremendously helped them too. Customers in the US are tremendously helped. The real wage is rising indirectly, while the inflation remains low. I still see many of the companies will fall off the cliff due to sheer competition, while the ones that thrive in competition will receive very high valuation in the market. Every large fund manager in the Wall Street will believe that QNTM is the leader in the DD sector only if earnings estimates are met by QNTM. I think the Wall Street knows QNTM's efficient business model very well because this stock is still primarily owned by institutions. The recent huge trading volumes indicate buying and selling among the large institutions. Those who held for a long time and made money wanted to get out by selling at ~$39. Others who lost wanted to get out for tax-loss. The new institutional buyers are obviously thinking about QNTM in the same way as we do. I think the currency devaluation is a tremendous boon to all domestic and foreign companies in Asia, while it leaves the local people impoverished. IMO, one should avoid investing in stocks of companies that are or will be sqeezed by competition. Sankar