Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Rob S. who wrote (6055)	12/3/1997 8:07:00 PM
From: William T. Katz	Read Replies (2) \| Respond to of 9124

Rob, sounds like an extremely bullish call. You didn't let your love of QNTM color the conversation did you? If only I had a house, I'd get a 2nd mortgage with the interest rate so low and sink it into this stock :) Oh well, I'm already up to the gills in QNTM ... have to hunt around for other pockets of cash I can siphon. QNTM looks shaky technically, but it sounds like the picture has not changed one iota on the fundamentals. I'd still expect some downside on the earnings, but at these prices, I'd say about 0.20 to 0.30 down from estimates is built in. Street is currently assuming DD will give no contribution (if not a loss) to current quarter. If they come even close to numbers this qtr and don't project huge problems ahead, this stock will fly. WDC numbers for Q3 and Q4 just got obliterated .. estimates are for losses and FY 98 = $0.30. WDC is effectively stalling while transitioning to MR drives which QNTM already is 100% into. Maybe now, QNTM can recapture some of the market share that WDC got when QNTM moved to MR. -Bill

To: Rob S. who wrote (6055)	12/3/1997 8:15:00 PM
From: jkb	Read Replies (1) \| Respond to of 9124

Great post Rob. If QNTM does meet estimates - which I still anticipate - this stock will fly - assuming management does not post any negative forward looking statements. -Jay

To: Rob S. who wrote (6055)	12/3/1997 9:52:00 PM
From: wallstreetbull	Read Replies (1) \| Respond to of 9124

Thank you so much for your work. You are a hero!!! This is exactly what I was thinking per my previous post yesterday. Great job!!! One question for you. Did you tape record the conversation so that you can play it over and over again?? Heheheheh DLT has no competition and it is the only thing going with no real competition in sight!!! (per my sources in the industry)

To: Rob S. who wrote (6055)	12/4/1997 9:29:00 AM
From: John A. Shaffer	Read Replies (1) \| Respond to of 9124

Rob. Thought you would like to know that the Motley Fool board for Quantum has a post from someone that has info on what Quantum said at the DMG conference. Similar comments to what you got from the Company. Very strong OEM sales for drives. Regards John

To: Rob S. who wrote (6055)	12/4/1997 10:40:00 AM
From: Zeus549	Read Replies (2) \| Respond to of 9124

Rob, I guess my question would be: If IR is saying the same thing to everyone including the fund managers, then why are they selling? Something here does not add up????

To: Rob S. who wrote (6055)	12/11/1997 9:59:00 PM
From: AlienTech	Read Replies (2) \| Respond to of 9124

Its a real shame you didnt record this conversation! To: +Sankar Acharya (6054 ) From: +Rob S. Wednesday, Dec 3 1997 7:58PM EST Reply # of 6599 To all. I talked today to someone in Quantum's IR department - Phew! What a relief! The high confidence level that, although pricing is very agressive on the low-end desktop segment, Quantum is not being impacted nearly as much as the competitors. Quantum has a "richer mix and higher capacity" DDs than the competitors. "We also have the lowest cost per MB and are 100% through the transition to MR heads". I suggested that WDC and SEG are about three to 6 months behind in the transition of their production lines and inventory adjustments to needed to move to MR head DDs. The spokesperson said that Quantum thinks that they are farther ahead than that. Because of their being behind, WDC and SEG are saddled with higher cost manufacturing of obsolete DDs just at the time that the market is ready for increased performance and higher capacities. Quantum sees demand across the board and particularly from their "large OEM customers" (I guess CPQ, DELL), as being "realy strong . . . great demand." I asked about the impact of the Asian "crisis" on business levels and the response is that they are not certain yet but see no significant impact at this point. Some aspects of the situation are positive while others are negative. While some demand from Asian consumers may be reduced, that segment of the world accounts for relatively a small portion of end uses, and the lower cost of supply due to the devaluation is having a stimulating effect on demand of PCs and other use equipment throughout the rest of the world. New qualifications of Quantums' new drives at OEMs is going "extremely well" - in other words, Quantum is kicking the s**t out of WDC, SEG, etc. in the large OEM accounts at a time when these accounts are capturing an increasing share of the overal PC/workstation/server martket. We also talked a bit about Terra Store but since it will be toward the end of next year before sales are likely to become significant, I talked mostly about the "gee wiz" aspects of the technology and where it is likely to fit. Boy are there going to be some foolish looking fund managers and other investors in just a few weeks! Come January/Feb., check out their prospectus and have a good laugh on whoever hires these idiots. My summation is that there will be some impact on Quantum's earnings this quarter but the impact will be mitigated by strong unit growth in both the DD and DLT product areas with help from some additional belt tightening cost efficiencies. Quantum said that they have not revised their guidance for the quarter since the last conference call. Naturally they expressed some caution but said that things are pretty much in line with what they have expected and they have no plans to restate their guidance or issue earnings warnings. It is still too early in the quarter to see how the final numbers will roll in, but it appears the market fears have been extremely overdone. My understanding and assumptions about Quantum wre completely suported by what I discussed in the call. To be honest, I half expected some disappointment - a drop like this shakes even the firmest reasoning. IMO, hold tight, don't fret, stay totally invested with Quantum being a significant stake in your portfolios.