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

To: William T. Katz who wrote (11576)	3/24/1998 4:50:00 PM
From: David Lawrence	Read Replies (2) \| Respond to of 12298

NEW YORK -(Dow Jones)- Applied Magnetics Corp. shares rallied 22% Tuesday, benefiting from the overall strength of the disk-drive sector and what may be a resulting short squeeze. The NYSE-listed shares (APM) closed Tuesday at $12.375, up $2.06, or 20%, on volume of two million shares, more than three times the daily average. Jeff Matthews, of investment firm Ram Partners, said the activity in Applied Magnetics shares may be in part the result of some short-covering. As of March 15, short interest in the stock totaled 10.3 million shares. In selling securities short, investors borrow stock and sell it, betting that the price will fall and that they will be able to repurchase the shares later at a lower price for repayment to the lender. Short interest is the number of shares that haven't been bought for return to lenders. The disk-drive group as a whole is showing surprising resiliency, given the bleak fourth-quarter earnings outlook from Quantum Corp. (QNTM) late Monday. Matthews said investors may be chasing the battered sector in the belief that the worst is over. Officials at Applied Magnetics, a Goleta, Calif., disk-drive parts concern, weren't available to comment.

To: William T. Katz who wrote (11576)	3/24/1998 5:06:00 PM
From: Bosco	Respond to of 12298

William - I share some of your sentiments regarding excessive exuberance [or pessessism;] however, many people are also prisoners of the 1 Q wonder. Ok, to step back a bit, you are quite right that APM is in a unique situation [see my 1st post of the day to this threa.] If you and I can think of APM downside, I am sure many people too. I mean, I don't know about you, but I am not that smart, not a tech and not a financial guy, so if I can think of it, it is hard for the people doing investment for a living not to see it. Also, as you point out, APM has already provided guidance for this Q. So it is accounted for. Ok, if it is worse than anticipated, then it is another thing; however, the opposite is equally true. What I am saying is that absolutism doesn't work here. Otherwise, people would ve stop buying the AOL and MSFT of the world. Otherwise, noone would want to invest in cyclical stocks when they are out of season. I don't mean they are justified. Ultimately, to me, the stock market is about human drama, it is about fairness, about greed, about steadfastedness, about immediate gratification, about betting against the odds. rgds Bosco