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

To: Rob S. who wrote (6731)	12/14/1997 6:41:00 PM
From: Rational	Respond to of 9124

Rob: <<Then if the Asian mfgs. Maxtor, Samsung, and fujitsu adobt rational policies to sell their HDD products at profit levels sufficient to service their debt, SEG, QNTM, and WDC should start to recover sales and earnings momentum by mid '98.>> If the market begins now to expect that this will be the case in mid-1998, the stock price will move up here on. Clearly, SEG firmed up on Friday (thanks to the WSJ article) from a low of 18 13/16 to 19 5/9 (unchanged). I do not think many read the SI (or maybe some fund managers do), as compared to WSJ. <G> There is a concern in the press that SE Asian workers may demand higher wages because of an effective reduction in their buying power for a basket of local and imported goods and that there may be labor unrest. Also, the currency prices may have bottomed and so plants in SE Asia may have have generated the highest cost savings for SEG in this quarter. If the currencies rise in value, higher wages will have to be paid in SE Asia and if Japan lets yen fall to compete with Korea, then QNTM will have a greater cost advantage in relation to SEG from now on. Sankar