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

To: Z Analyzer who wrote (6064)	12/3/1997 9:10:00 PM
From: scott harrison	Respond to of 9124

To all: Sent emails to Michael Brown and Rick Clemmer suggesting a buy-back. Perhaps a few of us should do it. scott

To: Z Analyzer who wrote (6064)	12/4/1997 12:34:00 AM
From: William T. Katz	Read Replies (2) \| Respond to of 9124

Z, not only am I exuberant, but I'm irrational as well. Uh oh ... doesn't that make me ... irrationally exuberant? SELL SELL SELL! Frankly, nothing you have said is new to me. In fact, I would say I'm a bit more pessimistic than Rob because I think we'd be in good shape to be off a mere $0.10 from consensus. Clearly there is price erosion and this erosion has probably moved above the 3 gb mark as warned in previous WDC conf call (last qtr). I also realize the enterprise drives have lost yet more money ... that was also expected. I'm optimistic because we probably aren't $0.30 off estimates, yet WDC and SEG are. I'm optimistic because the price drop practically builds in massive missing of estimates ... after all, we are down just as much as WDC and SEG yet both of them have been absolutely crushed with regards to earnings. I'm optimistic because QNTM is taking a one-time charge to deal with that perpetual cash black hole at the extreme high-end. The list of the best selling computers is dominated by QNTM-using computers [look for Ultra ATA 3.2/6.4 drives]. You said "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." Where was that snippet again? As I mentioned above, the one-time charge is directed towards this problem. In the previous earnings report, the high-end bled red as well but DLT + desktop made up for it. I'm also very curious as to how much the solid-state drives are pulling in. As highly-visited web servers proliferate, I would think this division would make good gains. Anyway, tossing all that out + NFR, as you say, the DLT business alone makes this stock cheap.