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

To: jkb who wrote (6446)	12/10/1997 10:22:00 PM
From: BlackDog777	Respond to of 9124

Any more cheerful news?

To: jkb who wrote (6446)	12/10/1997 10:43:00 PM
From: Trader Ric	Read Replies (1) \| Respond to of 9124

The most positive part of the cc IMO was about the DLT 7000 and its margins Evidently the Dlt "model" was raised to a 40% gross margin from 35% last Q. Upon questioning it was commented that in fact the margins were exceeding 40% on the DLT 7000! The DLT overall profit was flat because sale in the 2000 and 4000 were off. Evidently this was because customers were buying the older models as a hedge in case the 7000 wasnt available. It was commented that there were no production issues and that DLT 7000 was able to fill all orders at this time. Also they expected no competition for the 7000 for at least 12 monthes. Asia was only discussed in response to one question and I had the impression it was not a very big factor. Overall, I would expect some lowering of fiscal 1999 est, but heard nothing to suggest a major revision. We get a stock in the middle of a down quarter but the same (or better on the DLT) in the future outlook. Discouraged on my Dec25 calls but believe Ill do ok on my Feb 25's Ill buy more if the price of the options drop much. At least the uncertainty is over and we willseethe bottom this week.

To: jkb who wrote (6446)	12/10/1997 11:42:00 PM
From: Sheba	Read Replies (1) \| Respond to of 9124

More to the point, Korea is down 4.45%. Obviously, this is good and bad. Undoubtedly, Hyundai (Maxtor) and Samsung are not going to be able to easily access more capital. M. Brown stated that it boils down to a hard decision on their part, whether to use their (now-limited) resources to pursue a highly competitive dd business, or put their money into something else. My guess would be that they'll try to salvage their DRAM business before dumping more billions into disk drives but that's just my uninformed opinion. The bad part is if Korea really goes down the tubes, and triggers a global recession. For example, if the Dec. 18 election results in electing a president who will renege on the IMF deal. That's a real longshot, no one has ever defaulted on an IMF loan. The Nikkei index is also down, 1.83%. The Japanese electronics corporations are also facing some of the same issues as the Koreans, albeit not as severely. (I hope "not as severely". If Japan tanks, I think we're looking at a global depression.) I read that the Japanese are seeing reduced profits, in large part due to weakness in DRAM pricing. However, I don't know if Fujitsu is severely affected due to more diversification in chips. Sankar stated that they are in trouble also, so perhaps he can expand upon that comment. Taiwan (and I think Singapore) do not seem to be in as bad shape. Does anyone know if Taiwan has any aggressive dd companies? Gus is a lot better at this, perhaps he will offer some commentary on the subject. P.S. I think that demand for drives will increase nicely this spring when Microsoft finally comes out with Win 98. Plus everyone who bought cheap $1000 computers will have to upgrade their disk drives.