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

To: Think4Yourself who wrote (10804)	12/8/1997 5:06:00 PM
From: Brian Lempel	Read Replies (3) \| Respond to of 12298

Ken, <<FWIW, I think APM's latest press release is overly optimistic based on what I learned this past week.>> First of all, let me say that I think the announcement is very positive, in that it caught a lot of people with their pants down. From what I have seen in places other than SI, people don't really expect APM to post any kind of profit this yar during the transition. But WHAM, here they come with a press release basically saying, "Yes, things aren't so great, but we still (believe it or not) have customers, and plan on posting a decent profit in the next two quarters." Also, in response to your quote re-posted above, what makes you say this? What have you learned in the past week that has made you go from a bull to a bear? I am honestly curious, so please respond. Also, I think you are pretty damn naive to think you know more than the company. Brian

To: Think4Yourself who wrote (10804)	12/8/1997 5:08:00 PM
From: Xpiderman	Read Replies (2) \| Respond to of 12298

Applied Magnetics Corp. Announces Significant Changes to Order Backlog December 08, 1997 16:29 Dec. 8, 1997--Applied Magnetics Corp. (NYSE:APM) announced that it has been notified by its largest customer of significant changes affecting its order backlog. The customer's changes come primarily as a reaction to the current hard disk drive oversupply in the industry's distribution channel and increasing competitive pricing pressures. As a result, the company anticipates that revenue will be down more than 30% in the current quarter (FQ 1/98) from the previous quarter (FQ 4/97). However, it is anticipated that revenue will rebound in FQ 2/98 up to 20% as compared with FQ 1/98 as drive inventories are brought into line. Unit pricing for recording heads for both the first and second fiscal quarters has decreased more than normal, reflecting the downturn in demand. As a result of these actions, the company plans to take a one-time pre-tax restructuring charge of approximately $8 million in FQ 1/98 primarily in connection with a planned realignment of offshore operations. Separately, as a result of Singapore Technologies' announced intention to liquidate the assets of its subsidiary, Micropolis Corp., the company will revise its fourth quarter and fiscal 1997 results to reflect an additional charge for bad debt related to potentially uncollectible accounts receivable and obsolete inventory. This additional pre-tax charge will amount to approximately $4.2 million. Who is APM's largest customer? WDC? Don't forget to short that stock!

To: Think4Yourself who wrote (10804)	12/8/1997 5:39:00 PM
From: Rational	Respond to of 12298

Ken: Thanks for your appreciation. I felt uncomfortable Friday evening when APM "sneaked in" a SEC filing that has serious ramification on the stock price. I also agree with you that today's press release is overly optimistic. It does not say the important points that we have been looking for, namely, transition to MR technology which is my biggest concern. The market rewards the future earnings potential and information on this transition is most critical, IMHO. I feel that a company that is not disseminating the most critical information is not worth investing in. I may be wrong, but I will have no regrets. Sankar