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

To: Frodo Baxter who wrote (11679)	3/30/1998 12:44:00 AM
From: 777 Captain	Respond to of 12298

It could go either way. On the basis of fundamentals, other than earnings which have yet to be reported for the 2nd qtr., the bad news is out there. The fact that the stock is behind the industry, using cash for development, unresponsive to investors (according to some - not me), doesn't have a definite customer for it's 2.8 MR Heads, if they ever are developed may not be profitable, I could go on. Bottom line, it's out there. The stock seems to want to go up in spite of all of this. APM has been through this before, and I believe they'll weather this storm. If they receive a buy out offer, it will be too late to buy. If they announce successful development and testing results, it will be too late to buy. If they announce a loss of .75/share vs. 1.01/share - too late to buy. If they do anything right, AND the market reacts, too late to buy. The brokers (lemmings) will see it as an opportunity to put it on their recommended lists again. Downside - 5.00 - 7.50/share. Upside: 15.00 - 22.00/share. I'll give management the benefit of the doubt and continue to hold.

To: Frodo Baxter who wrote (11679)	3/30/1998 7:51:00 AM
From: Zeev Hed	Respond to of 12298

Lawrence, I am watching a number of "fallen Angels" for possible revival, including Syquest, GATE, IMPX (on which I have just turned "pinkish" as well as a group of DD. Frankly, by the time I know the reason one of these turns into a Phoenix it is too late, every one knows the reason and it is in the price. That is why I am trying to follow the technical action where a "story" could develop. In the case of APM the story is "future" profitability, and in their case they have enough cash on hand to survive few quarters of red ink. I got into GATE based on similar premises, a sharp drop in price due to mounting losses and a floorless until the stock refused for few weeks (actually months) to go further down and then an explosion of volume gave me the signal. Within a week it went from $.5 to $1.5 and I sold a month later at $2.5 (it is all recorded in the GATE thread). I am hoping that your 40% drop in one day might materialize since these drops are often cataclysmic and bottom forming. For now, however, I have not the foggiest what would be the actual catalyst for a turn around. I did not know in the case of GATE either. As a matter of fact, once I learned what the catalyst was, I decided to sell. Zeev