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

To: William T. Katz who wrote (6056)	12/3/1997 8:38:00 PM
From: Rob S.	Respond to of 9124

William, I like Quantum but have only invested in it since about four months ago - shortly after the evluation of a Quantum HDD perked my interest. I think that Quantum has made excellent strategic moves in acquisitions, product development and arrangements for manufacture but I don't think that I am "in love with Quantum". When Quantum shot up to around 42, I thought I would sell but decided to sell 35 calls against it instead. I figured that for the time period it was over-extended and the high tech sector was due for a pull-back. It pulled back a lot more than I ever expected. Now Quantum is at the lower end of historical multiples and the fundamentals and strategic positioning of hte company is problably at the best point in its' history, despite or maybe even benefitting from the problems of its competitors. Quantum is agressively gaining market share for HDDs and expanding DLT business while it's developing exciting new technologies that have great promise for growth. This kind of an opportunity that comes along two-four times per year if your lucky enough to recognize it. I may sell Quantum next quarter and not get back in for ten years. I don't work for the company or know anyone who does personally and "I am only in it for the money". I'd never get away with talking like that to a lover.

To: William T. Katz who wrote (6056)	12/3/1997 9:01:00 PM
From: Z Analyzer	Read Replies (2) \| Respond to of 9124

Bill, Don't get too exuberant. Several things have changed since the time of the conference call. Whether the things that are going well along with the original cushion will be enough to save the quarter is anyone's guess which is why several analysts reduced estimates after Comdex. The factors which warrant some caution: -Low end pricing is extremely weak and has now bled up to 3 GB. It clearly was not expected to be this bad. -Quantum's high end will lose $20 mil or so as guided in the confeerence call in Dec qtr. What was news (at least to me) is that March is not expected to be much better and even the next generation is not expected to be profitable. Despite this, I believe Quantum trading for well under the value of DLT is rediculously cheap.