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Technology Stocks : QUANTUM -- Ignore unavailable to you. Want to Upgrade?

To: john dodson who wrote (8458)	2/12/1999 12:46:00 AM
From: Henry W Singor	Respond to of 9124

Because the technology changes so quickly in the disk drive industry, it is a very wise business practice to keep a lot of cash on the books. This is a strategy that both QNTM and SEG, two of the most successful drive companies, have employed. About 18 months ago if I remember correctly WDC was buying back their own stock at 40-$50 a share. They were sticking with thin film heads as everyone else moved to MR and they received a short term benefit. They used that winfall to buy back their stock. But when the competition moved ahead quickly with MR areal densities and WDC had problems with their thin film heads WDC was left in dire straights. If WDC does a secondary offering it will be reissuing the shares it bought at $40 for about $12. It will thus join a lot of people who to their own misfortune invested in their stock. Henry

To: john dodson who wrote (8458)	2/12/1999 2:00:00 AM
From: Stephen O'Hara	Respond to of 9124

John--- #1 I've been posting this for 2 months now--- Clinton gets off the hook, the market goes up 300-500 points in a couple of days after, I don't care about anyone's politics, it's just that the market hates uncertainties like this, or like when there is no budget. I think that the market will rally big over the next few sessions. #2 I respect your point and the next poster's point about other things to do with the cash, but they are not adverse to diluting the stock for aquisitions, then buying it back (atl). So, why not give a little back to the shareholders and show the street some confidence. Although, I suspect that they have plans for that cash... a real big aquisition this summer. Anyway, I just don't think that question was handled that well in an otherwise very good conference call by Mike. #3 Totally agree with the poster that said that this stock is a great trading stock. Given its avg. shares traded and the daily spread from its high to low, its tricky but Its almost like you can sell early and pick it up for around .50 cheaper or more later on in the day. Not for the faint of heart though. I bet if you put your sell in at 23, which I think we will at least hit tomorrow, and then put a buy in at 22 - 22.25, you will get executed later that day or Monday. This stock opens up strong on real low volume and then has the tendancy to retrace back to the opening price. I remember a couple of months ago, I sold at 22.75 with about 40 minutes left in the trading day. I came back to my screen with ten minutes to go, and the stock was at 22-22 1/8 (Naz dropped 40 points in the last hour). It was a Friday, so I figured That I would wait til Monday and Maybe get it a little cheaper. Monday, I'm watching the bid on E-Schwab. It had opened to 22 5/8 by 22.75 on a measley 8,000 shares (If Schwab was right) and I had to buy it back with no discount. One hour later it was back to 22.25. Talk about volatility! Good Luck, All Steve AA