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

To: Jonathan Bird who wrote (10590)	12/4/1997 5:52:00 PM
From: Rational	Read Replies (2) \| Respond to of 12298

Jonathan: If the stock traded at 40% of the then book value, the market then had over-reacted to APM and made a mistake (we can tell this with hind sight). Is it possible that the market is over-reacting now? If the market has learned from its mistake (since the price subsequently rose to about 8 times the book value), is it possible that the market will not do the same mistake again? WDC's cutback will affect APM's earnings, but not as much its gross margin because WDC must have negotiated for some cost of getting the TFI from APM. It is also possible that WDC has decided to change its gear to MR because APM has become able to produce MR heads in volume to meet WDC's demand. After all, APM has been a trusted parts-supplier of WDC. Do we have information that WDC will get its MR from someone else? Thanks in advance. Sankar