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

To: tom pope who wrote (6849)	12/21/1997 3:26:00 PM
From: Rob S.	Respond to of 9124

I think buying right now is a bit premature. There is still more bad news coming from Asia. I think it will be several days to several months before all the problems unwind. The investment banking and brokerage community who have been lending money and investing in Asian will be trying to spread their losses. If the institutions are too scared to buy because of chills on Wall Street, the tech stoks will see a rocky road. I think it's better to hold onto what you've got and wait for a clearer sign that the corner has turned. Quantum and many other tech stocks could just as easily head down another 25%-50% than they can head up. The "January effect" rally is partly caused by investors buying back the stocks they sold for tax reasons and by institutions and funds that are buying due to good earnings being reported coming off of the seasonaly best quarter for electronics and consumer products. The fear in Asia may override much of that. If you invest at this point, you may want to hedge your investment with puts or by offsetting the long positions with shorts in other stocks that you think are still overvalued. From a long-term valuation and strategic product/market position standpoint, I think Quantum is a good buy at the current price. However, it might look like a much better buy in a few days if the fears of a further Asian downturn is not quickly shaken off.