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

To: Zeev Hed who wrote (11254)	1/17/1998
From: Frodo Baxter	Read Replies (1) \| Respond to of 12298

>Alien, the very negative feelings on this thread are telling me to start and look for a bottom somewhere here. The bottom is zero. >...but I also think that this company has enough cash on hand to get back into the game, eventually. 12/27/97: Cash: 131 mln Bank Notes: 50 mln Long-term debt: 116 mln Gee Zeev, if you lend me 166 million, I think I can show 131 million in my bank account. I'll piss away the rest. If you have an argument more compelling than "Well heck, it can't go much lower now," I'd love to hear it.

To: Zeev Hed who wrote (11254)	1/17/1998 12:30:00 AM
From: Greg Jung	Read Replies (1) \| Respond to of 12298

Zeev I agree the chart looks very flat at 10 for a bottom, but the situation as shown in the Annual report is deteriorated. Aside from the technical development, which they will probably master over 1998, the customer situation wasn't promising: WDC was 79%, Quantum was 10%. Quantum is going away and WDC reduced backlog, etc. accelerating their own transition out of TFI, so APM will no longer be anybody's "primary supplier". Additionally, IBM has made murmurs about selling its heads to other DD manufacturers. OTOH they have shown the ability to maintain a profitable production with the recent year-long run. The industry mania acted to reverse that rather quickly, a 9-month lag from tight supplies to a market flood. One possibility would be a buy-out by WDC or IBM - that may give some volatility to the issue in the coming months. Greg