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

To: William, III who wrote (6181)	12/6/1997 12:01:00 PM
From: jgideon	Read Replies (2) \| Respond to of 9124

Let's not hold our collective breath for blowing away of any earnings estimates. Lehman (Kim Alexy) has been one of the saner voices out there. These numbers need to be taken seriously. Note that Lehman now has $2.26 for FY 98 compared to the street estimate of $2.67. If, or should I say when, others drop to similar levels in their estimates, that will constitute negative news -- even though QNTM has said nothing officially. The Lehman report specifically targets $2 in earnings over the next 12 months for DLT. Hence, they have a reasonable floor to their estimates and are not cutting due to some misperception that QNTM is purely a DD company. jg

To: William, III who wrote (6181)	12/6/1997 12:06:00 PM
From: John A. Shaffer	Read Replies (2) \| Respond to of 9124

Here's another interesting comment made on 12/3 by Lehman pertaining to data storage. "While drive stock prices have collapsed to what might be viewed as compelling levels of valuation, we remain unconvinced that we have yet reached an inflection point in the fundamentals which will serve as the catalyst for a recovery in the group. Due to lack of visability into improving market conditions, and a corresponding lack of substantial improvement in the supply/demand fundamentals and related pricing aggressiveness, we believe the group will continue to underperform near-tearm" "Correspondingly, we readily admit that it is too early to re-enter the group at this time. Even Quantum's shares - which we believe are severely under-valued at current levels ( with the tape business alone valued at approx. $40) - will likely remain under pressure until both sentiment and earnings visability for the group improves." "However, as soon as we see evidence that the environment has stabilized, we would aggressively recommend purchase of the shares in the HDD sector with the expectation of strong gains in 1998." "Quantum remains our favorite stock in this space." Regards John