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

To: Brian Lempel who wrote (11752)	4/20/1998 8:16:00 PM
From: Frodo Baxter	Read Replies (1) \| Respond to of 12298

My, oh my, what a dramatic cash burn situation APM has found itself in. And gee, doesn't the R&D spending look like the desperate flailings of a company that suddenly (sic) and unexpectedly (sic) found itself dead last in an industry transition? Brian, do you think it's just me, or does the 2.1 TFI head resurrection represent a Machiavellian attempt to inflate APM's book value? Consider, that when RDRT said that they will reach end-of-life sooner than expected for TFI, they wrote down $92 mln. APM's SEC filings have said repeatedly that they were taken by surprise (sic) by the industry's fast (sic) transition to MR. But yet, they have not taken any asset writedowns. How much do you think APM's $211 mln in property, plant & equipment is devoted to TFI manufacturing? (n.b. APM's book value $170 mln; their credit line has a technical covenant requiring $165 mln book) But then, what do I know. I shorted this company at 10 1/4 after their last "couldn't be worse than this" earnings release. :)