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To: Tmanquinn who wrote (7063)	1/16/1998 7:21:00 PM
From: Gottfried	Respond to of 9124

Vincent, the current issue of Forbes has a story about Hutchinson, including some of the crucial numbers. IBM's new 8 GB drive for laptops uses a new type of suspension, without wires. Conventional suspensions are sold for around 60 cents, but the new suspension is $1.60. The old suspensions still account for 93% of Hutchinson's sales. By 2000 Hutch expects 75% of unit shipments will be the new type, accounting for 85% of revenue. They ship 12 million suspensions in an average week. Page 85 of the Jan 26.Forbes "Keep them in suspension" GM

To: Tmanquinn who wrote (7063)	1/16/1998 10:58:00 PM
From: Stitch	Read Replies (2) \| Respond to of 9124

Vincent; It may be a bit early to buy HTCH. They are expected to post a loss of .34 ( www.firstcall.com ) in their first fiscal quarter (reporting on the 20th I think) and there is some potential for a downward surprise IMHO. Their new product, called TSA, (alluded to in GM's post) is still having yield difficulties and is costing them more to build then they can ship it for. On top of that they are sitting on unused expansion space and it isnt clear to me how long that may go on. HTCH is a good solid company whose industry is having the blues at the moment. I don't see any reason to buy it now but would choose to wait a bit till all the bad news is digested. You may be able to pick it up in the 15-17 range. Still, at a current PE of 10+change against an historical average of 34 I can understand the attraction. But for my money I would wait it out a bit. Best, Stitch