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

To: Jonathan Bird who wrote (11358)	1/30/1998 11:15:00 AM
From: Greg Jung	Read Replies (2) \| Respond to of 12298

Given the outlook, then, the market buys the disk drives? Or do the gutless shorts scramble for cover when the price doesn't get cut in half every earnings day? Any thoughts on the groupthink behind the DD stocks rise this am? Greg

To: Jonathan Bird who wrote (11358)	1/30/1998 11:17:00 AM
From: William T. Katz	Respond to of 12298

Jon, I agree with your notes on the WDC conf call. I think APM will really be hurt by WDC's do-or-die MR transition. I got the impression they were dropping TFI as fast as humanly possible. Previous APM announcement stated "substantial" losses upcoming and that makes total sense. WDC is losing cash fast, that struck me more than any other thing from the conf call. They will have to tap their credit line sometime within the next one or two quarters. If WDC is losing cash that badly, makes you wonder about how APM will handle both the oversupply and the MR transition without substantially taking cash hits. People think current price is high compared to book value ... just wait to see what book value remains in 2 quarters. -Bill