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

To: Brian Lempel who wrote (10818)	12/8/1997 5:44:00 PM
From: Think4Yourself	Read Replies (3) \| Respond to of 12298

Sorry, I'm into this too deep right now. I think I'll take a day or two off after tomorrow. As was recently pointed out, APM is saying REVENUES will decline by MORE than 30%. That could mean 50%. They have only said it's at least that bad. Also, as APM has stated in SEC reports, their great efficiency comes from volume production. They just announced that their revenues just dropped by at least 30%. Some of that is probably due to simple profit erosion but the rest is reduced volume, which will be magnified in efficiency losses. Also don't forget that they will have project rampdown production in this quarter for WDC. Just think what the damage will be NEXT quarter when the project is completely gone. So they will replace it with MR? MAYBE! If they don't hit snags with their MR rampup, then that will help. the $8M and $4M charges don't help matters. I also believe there will be more than that charged. Look at WDC; In less than a month their announced charge went from ~30M to ~80M! There are many other reasons why I chose to short APM. I EXPECT another earnings warning before their numbers come out. Sorry to sound negative as I suspect you are long the stock. Ken