SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?


To: Robert Douglas who wrote (5755)3/2/1999 10:59:00 AM
From: Z Analyzer  Read Replies (1) | Respond to of 9256
 
<<I may be old fashioned, but I still believe that you increase value by earning
profits, not the way you present those profits to the public.>>
Apparantly you haven't looked at internet stocks lately. Doesn't it seem funny that for most of the last 3 years, assingning any reasonable valuatiuon to QNTM's tape business left you with a negative value for the drive business?



To: Robert Douglas who wrote (5755)3/2/1999 11:02:00 AM
From: KevinThompson  Read Replies (1) | Respond to of 9256
 
A stock is worth what the market will pay for it. Supply & Demand.

In a typical stock split, the moment it splits you have twice as many shares at half the original value. But moments after that, if additional demand is still unsatisfied, there is now more supply of the stock and hence the ability for price action to move to the upside (increase). Happens all the time in issues where supply and demand is steep to the demand side.

I view this suggested move by QNTM in similar light. The idea was for management to respond to stockholder concerns about share value. This move is intended to improve demand for the stock and hence, add value for the shareholder. Some believe, and probably rightly so, that the storage systems division of their business is discounted unfairly as a part of the total equity reflected in their stock price. This move should help to draw attention to that fact and therefore improve the overall valuation.