Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jonathan Bird who wrote (11161)	12/29/1997 3:57:00 PM
From: Frodo Baxter	Read Replies (1) \| Respond to of 12298

Zeev, Jon and all, Look, it doesn't matter. It's all details how much per share they lose. When valuing fundamentally unsound companies, you look at how close they are to the brink. Bankruptcy is not determined by earnings, it's determined by cash. Here, we see $150 cash, $100 debs, $50 Malay bank line (which will probably be called), and VERY NEGATIVE cash flow as far as the eye can see. Let's review the technology one last time: 1.3 TFI program, accelerated end-of-life forced by WDC; 1.7 TFI program, super accelerated end-of-life forced by WDC; 2.1 TFI program, canceled; 2.1 MR program, no presence, suppliers already locked for ALL major drive makers. Now which drive maker is going to risk its crucial head supply to a has-been which has underinvested, underdelivered, and is eons behind the technology curve? An honest assessment of the situation calls for immediate liquidation before more value is destroyed. No management in the history of the world has ever been honest in this respect. They ALWAYS have to drive the company into the Earth's core. FWIW, I sure hope APM doesn't go to zero in 1998, as tax law changes have made that a taxable event. Much better (for me) for the stock to linger indefinitely on the pink sheets.