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

To: Jeff Egg who wrote (6743)	12/14/1997 10:58:00 PM
From: Rational	Read Replies (2) \| Respond to of 9124

Jeff: If you are saying that offering new debt is bullish, I tend to agree with you for a different reason. If the company sees good prospect ahead as a result of new investment (say a very high rate of return), then issuing debt at an after-tax cost of about 5% (7%*(1-tax rate)) is a great deal. For example, if the new investment is worth 20% for equityholders, the company can reap a net profit of 15%. Did you say that there is some rumor that QNTM is shopping to make an offer and so before an SEC filing, they are shopping? Then, QNTM could be into something big, IMO. What could that be? Sankar