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

To: Rob S. who wrote (6066)	12/3/1997 10:19:00 PM
From: Rational	Read Replies (1) \| Respond to of 9124

Rob, Thanks for the information from IR. The reasons for QNTM to not fly after good earnings reported in October (IMO) are: * The projected charge of $40 mil (?) after tax must have cast some shadows in the minds of funds. * General weakness in the tech sector with many companies (especially SEG and WDC) missing earnings. * Some fund that had made a lot of profits this year must have decided to sell no matter what. Other market makers may know the fund manager selling and may even know the price at which he bought. Thus, other funds may like to force the seller to sell at ~$20 assuming that this was the price of entry of the seller. Thus, there is a (remote) possibility that the price may fall to this level. IMO, QNTM's price is unlikely to go below SEG. I heard that SEG bought back some shares and so the price was artificially propped up until today. SEG dropped significantly today and may drop even further as investors recognize QNTM as the leader. SEG dropping further is bad for QNTM, though, because the lower bound for QNTM will likely go down further. I do not expect this to happen, but I would like to be cautious before buying a lot more of QNTM. I feel that QNTM will appreciate to about $35 by mid-January as new funds move in. Sankar