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

To: Z Analyzer who wrote (6045)	12/3/1997 3:56:00 PM
From: Z Analyzer	Read Replies (4) \| Respond to of 9124

Who the hell is selling all this stock?? 10 million shares again today on no news. Seems like I saw a lot of block trades go off on the bid sided or below. Last trade of 75,000 at 24 1/8 (again the bid). Seems like somebody big decided to sell regardless of price. Doesn't seem like this could be anyone other than Fidelity? By the way, I take back all the bad things I said about Andy Neff. Its surprising his recommendation didn't help more today. Had he said sell, Quantum surely would have tanked.

To: Z Analyzer who wrote (6045)	12/3/1997 8:25:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 9124

Stock buy-backs are often done more for psychological impact than because management thinks it's the best use of the funds. Of course it indicates the confidence the company has that the stock is undervalued and future prospects look at least good enough to justify a higher price. Quantum could "put a floor" on the stock by announcing a buy-back that is large enough to absord a few days of normal volume. That would likely draw some of the short sellers to cover, although short selling doesn't seem to be that big of a factor for QNTM. The biggest effect would be to calm the market jitters enough for people to take faith in the low valuation. Quantum may not need to use the cash to purchase much stock. The psychological effect would problably help the stock to recover enough that buyers would enter the market to move it up. If the stock dips more than a certain amount, they could then actively buy. I think it would be a very good move on Quantum's part and would help them to keep their long-term investors. Quantum hopes to increasingly diverify their revenue base outside the HDD sector, along the lines of what they have done with DLT. If they are successful in doing that, then investors will gain in the appreciation that the stock carries a lower burden of risk that justifies a higher P/E and other multiples. It makes sense for Quantum to make efforts in keeping with the objective of removing the high risk factor associated with the HDD sector from investors' thinking and a buy-back is about the clearest thing Quantum can do at this point.