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Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?

To: Don Earl who wrote (10574)	12/4/1997 12:42:00 PM
From: Dave Chanoux	Respond to of 12298

Don, let me post a small show of support for your position. I am an individual, long term investor. I've never shorted a stock or bought/sold options. I recently purchased some APM. Here are some of the things which went into that investment action. Regarding the disk drive sector: Demand for computers and disk drives is strong. Market is competitive. Merchant manufacturers have a place in the market and will continue to do so. Technology turns over quickly and merchant manufactures deal with this change to survive. Cyclical extremes are business-as-usual Regarding APM: Established merchant manufacturer Came through the Conners/Seagate transition OK Investements going in the right places High margin, leveraged business model Quiet company, promoting uncertainty and volatility Among my rules-to-live-by is one which says that the market generally over-reacts. The developments in the disk drive sector over the last quarter remind me of the semiconductor business 18 months ago, when the equipment companies were written off. I found Novellus Systems to be a good buy. Maybe I was lucky. Right now, all the news comes from Western Digital and all the news is bad. Maybe sometime in the next two years the news will be better. Regards, Dave Chanoux