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Technology Stocks : QUANTUM -- Ignore unavailable to you. Want to Upgrade?

To: steve goldman who wrote (7412)	2/27/1998 4:52:00 PM
From: RFF	Read Replies (2) \| Respond to of 9124

Steve, I wouldn't characterize QNTM as a high debt company. 90% of its long-term debt is convertible, half of which has just been called and will be converted into equity. This will leave it with about $300 million in long-term debt vs. $720 million in cash and securities. It doesn't make sense to payoff debt costing only around 5%. As for being a cash cow - it generated $270 million in operating cash flow in the last nine months. A rather harsh period for the DD companies. The company could be debt free if it wanted to, but that would not be smart corporate finance. They are actually very conservatively leverage, which is prudent considering the ups and downs of this industry.