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Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (11069)	12/18/1997 12:30:00 PM
From: T Bowl	Respond to of 12298

Mark - I'm not denying that RDRT has been hit hard by this. They do supply the 1.3GB to WDC as well - the PR specifically spoke about it. They came out with the U/S reduction heads at the end of 96. APMs GMs have been drying up ever since. Check the #s. 38%, 32%, 27%. The bread and butter is gone. todd

To: Mark Adams who wrote (11069)	12/18/1997 7:25:00 PM
From: Frodo Baxter	Read Replies (1) \| Respond to of 12298

>There are better shorts available. Name one. The bearish case for APM is that they don't have cash available to finance a transition to MR quickly enough. Available evidence: 1) TFI revenue drying up double-quick (30%, for god's sake!) MR revenue minimal. 2) Questionable book value. Assets are tech properties in Malaysia. Write-downs coming for accelerated end-of-life. 3) Credit facility value has dropped due to depreciation of ringgit. Interest rates in Malaysia are high, as well. 4) Already leveraged with convertible debt offering. Will be difficult (read: expensive) to acquire further financing. APM will not survive 1998 as an indy.