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

To: Think4Yourself who wrote (10706)	12/6/1997 9:10:00 PM
From: Rational	Respond to of 12298

Ken: It appears the Yahoo net income # for RDRT may not be correct. Yes, you are right. So, I took the numbers from the companies' earnings releases. Even if you take the latest quarter's numbers, APM is ahead of RDRT in efficiency. The herd will get back to APM as soon as APM makes an announcement that they have achieved their full volume production of MR heads and have shipped to their customers as planned. This alone will put to rest all the speculation about a well-run company and take the fear factor out of the price of APM on the instant the announcement is made. The fear factor for APM comprises two elements: (i) general fear for the DD sector, and (ii) APM might not be ready to ship in volume. IMO, the general fear for the DD sector is due to the fact that component (head) prices are going up while the HD prices are coming down (cf. WDC announcement). Thus, the standard fear for the DD sector should not affect much the component makers like RDRT and APM, although both seem to have lost values of the shares. I would not therefore short RDRT, and certainly not APM. Sankar