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

To: Ken Kettler who wrote (11389)	2/6/1998 8:52:00 PM
From: Frodo Baxter	Read Replies (1) \| Respond to of 12298

>I too was at the shareholder meeting. What effect does increasing the number of shares usually have on stock price? Dilution tends to drop-kick the stock price, but it's sometimes preferable to the alternatives (debt, bankruptcy). Did you learn anything new at the meeting? Hungry bears want to know.

To: Ken Kettler who wrote (11389)	2/7/1998 12:29:00 AM
From: Jens Riege	Read Replies (1) \| Respond to of 12298

To Ken and others since his reply: I got the impression that Crisman was very careful to not give too much information. I have seen this in previous meetings. My feeling is that there is too much uncertainty in the market in general that could impact Applied Magnetics on the Plus or Minus side. Most of the info was presented in that balanced-type of picture. This is also evident in how the information about the company was reported in the 1997 annual report. Unfortunately, bears or bulls can't do much with this info. Some of the questions revolved around whether Applied Magnetics was ready to transition to MR and whether it had enough capacity to make the switch. He replied that AMC had converted its inductive fab over to start making MR heads and that the existing MR fab had been expanded three times in the last few years. He felt that capacity was not an issue. When asked about if any one competitor posed any strong challenges to AMC, he replied that he considers all of the existing competition as capable. Again a very broad but probably realistic answer.

To: Ken Kettler who wrote (11389)	2/7/1998 6:53:00 PM
From: Bald Eagle	Read Replies (1) \| Respond to of 12298

<<What effect does increasing the number of shares usually have on stock price?>> Well, IMHO, at least in the short term, down. Basically, because the shares you already own are diluted by the new shares.

To: Ken Kettler who wrote (11389)	2/8/1998 3:04:00 PM
From: Ken Kettler	Read Replies (1) \| Respond to of 12298

During the meeting, Crisman was asked for his outlook for the future. In his response, he stated oversupply was still a problem. He stated that he had heard projections from others that the oversupply problem could clear up within the next quarter, or remain for up to three quarters. He said that APM will assume the worst. When asked about the plant closing in Ireland, he stated that since they have no orders from Europe, it was not cost effective to ship the parts from the far east and then ship the finished product to the ordering company. The plant was shut down in December. He was asked if it was likely that APM would end up with an oversupply of thin film heads as the industry transitions to MR. He replied that they only make product when it is ordered. Not knowing much about this industry, I found this interesting.