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

To: Jeff Egg who wrote (6685)	12/13/1997 3:05:00 PM
From: Rational	Read Replies (1) \| Respond to of 9124

As of Sept 30, they had $528 mil convertible bonds (the market value could be $400 mil). QNTM also had $1.3 bil net current assets, which is cash and equivalents. If the C. bonds are bought at a heavy discount, the company can easily save .07*528 = $37 mil per year. The earnings will then go up by $37 mil per year and the fully diluted EPS will receive a boost due to this increase as well as due to a reduction of about 12 mil (conversion) shares. This is a smart move for QNTM and the rumor may be true. This is very bullish for the stock, IMHO. Sankar