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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: DLS who wrote (17161)	7/18/1998 4:53:00 PM
From: Clint E.	Read Replies (2) \| Respond to of 69633

Hi DLS. It is very common for small companies to beat estimates hugely for one or two quarters since most of them are not widely followed or understood by analysts. I don't follow QLGC so I looked around a bit. Looks like they compete with ADPT in designing SCSI & Fiber Channel chipsets. Last month, ADPT decided not to buy Symbios(fiber channel) from Hyundai. According to company's press release it was due to FTC approval issues. Sounds a bit fishy, especially since LSI turned around and made a bid for Symbios. ADPT's stock and balance sheet are both depressed so turning around and buying QLGC wouldn't be an option. So, guess what they are going to do. I wouldn't be surprised to see QLGC back around 30 in less than a year as ADPT will catch up with them & price competition begins. I am adding this one to my list. This could be a good fundamental short. Clint