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

To: NucTrader who wrote (6710)	12/13/1997 10:26:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 9124

The finacial turmoil that has hit Asia and caused HDD, semi equip and other stocks to plunge will have more dramatic longer-term efects on capital equipment companies than on component and peripherals comanies, IMO. Up to now AMAT, CMOS, and until recently KLIC have said that they see very strong demand from Asia. In the quarterly conference call AMAT said that sales to Asia had increased ahead of their projections, particularly toward the end of last quarter. I think that a real strong posibility is that the S. Korean and other Asian companies have seen that the worsening liquidity situation would effect their next round of financing so they pulled in any near-term cap. ex. plans - "we better spend the open lines of low interest credit we have already negotiated while we still have it - tommorrow when we need to roll-over these credit facilities, our credit lines will shrink or be much more costly". I think that there will be a trickle down of tightening cap. ex. spending in the next several months and many Asian companies will cut back or terminate new plant and equipment build-outs. The ~30% cap. ex. reductions announced recently by Samsung and Hundai are just the tip of the icegerg, IMO, and the semi quip. companies probably have further to freefall before they hit bottom.

To: NucTrader who wrote (6710)	12/14/1997 10:27:00 PM
From: Jeff Egg	Respond to of 9124

Keep in mind that many very strong companies borrow money. If you are borrowing because you are weak and living on the edge....clearly that would be a problem and QNTM certainly does not fit that description. If a company is healthy it may just wish to take advantage of a low rate enviroment especially when their business is very strong and can support it. They may have just wanted to test the acceptance of the Debt investment community and find out what the cost would be to QNTM if they did come to market. Will try and confirm or clarify on Debt deal being shopped in the market.