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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Tom Simpson who wrote (3479)	6/3/1998 4:38:00 AM
From: Stitch	Read Replies (2) \| Respond to of 9256

Tom, << They seem to be doing the right things actually.>> Agreed. <<Its early yet, but if one were into bottom fishing, this one looks like it could eventually rise from the deep. >> Agreed again, on both counts. I am still sidelined but I do like Komag, especially management. I believe they will recover from the blind corridor they stumbled down (the Ulvac one). I would like a little more light on that supposition however. I liked the fact that they have shown media for GMR apps. Komag is about my single most succesful investment ever. I hope to have a chance to make it so again. But it is a very crowded marletplace. We will have to wait a bit to see. P.S. I still think it is uncanny how similar we read these guys. I also still think you should consider Seagate BTW :). best, Stitch

To: Tom Simpson who wrote (3479)	6/3/1998 6:07:00 AM
From: Frodo Baxter	Read Replies (1) \| Respond to of 9256

I'm not too sure about your liquidation models... The big variable is the property line, as it usually comprises more than the total shareholder equity. Who would want to buy a bunch of SE Asian high-tech factories that need require capital expenditures only to supply an industry in oversupply? Even in the best of times, these guys are all free cash flow negative. Luckily for KMAG, they have an out. They're most likely going to do some sort of convertible deal soon. Don't bottom feed until after this deal has been discounted. All the rest of the players have already exhausted this route, and so are much more levered (and vulnerable). I still think there's something fishy with HMT's accounting. Are they really that much better than everybody else? A small equity base, vociferous cash burn since birth, and last quarter, a bloat in accounts receivable. Umm, classic danger signs...