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

To: Gregory Seward who wrote (8926)	6/4/1999 10:27:00 PM
From: Sam	Read Replies (3) \| Respond to of 9124

Don't know if this will do it, by Robby Stevens just reiterated their buy on QNTM. Posted earlier, but here it is again: techstocks.com. The feeling of most of us who have followed QNTM for awhile is that the value of the drive business plus the value of the tape business is currently greater than 19. RS puts it at 24, but many of us feel that that is pretty conservative, and that a combined price in the 30s would be a more accurate appraisal of their businesses for now. Some of us--me, anyway--think that the tape business could be worth a great deal more, if they make the transition to SDLT (Super DLT) properly early next year, and if their newly announced foray into storage systems doesn't end of just eating cash and producing losses, a la the head business of the past few years. Furthermore, my own speculation (hope?) is that consolidation will occur sometime in the next year in the drive business, and that QNTM will be one of the survivors. Indeed, if the stock goes down more over the next month, it will actually help them, as they are in the process of buying $200 million of their stock right now, and will be able to retire more stock with a lower price (as long as the price stays above $14, which is where their price to takeover Meridian Data is capped). You may wish to short QNTM common and buy Meridian Data, it's an arbitrage play that is worth about $3 or so. Pretty wide spread, I'm not really quite sure why, as the chance of the deal falling through seems to me to be not very great. Hope that helps. Sam