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

To: William T. Katz who wrote (5853)	12/2/1997 8:58:00 AM
From: marc chatman	Read Replies (2) \| Respond to of 9124

Will the WDC announcement hurt QNTM more because of the anticipated lower earnings, or because of WDC's announced intention to crank up the high end drive business even more (potentially creating more competition, more supply, lower margins, etc., in that segment of the business)? Thanks for any opinions.

To: William T. Katz who wrote (5853)	12/2/1997 11:28:00 AM
From: Rob S.	Respond to of 9124

William, shorting WDC would have been a smart move - wish I had done it myself. WDC needs to transition to MR heads because they are losing money building current drives. Write-downs of invesntory and re-tooling costs could be expected. Fortunately for Quantum thats something they dealt with months ago. With the severe price cutting that has occured in the DD business, I doubt that Quantum will come out uneffected. I expect some reduction in QNTM's earnings forecast for the next few quarters. The question is by how much? This shouldn't be a big change from current estiamtes, but until we hear something from management, either positive or negative, the question (and fear) is overhanging the stock.