Larry,
Thanks for your note before. ADPT at 11 has some of the signs of ASND at 22. In both cases:
(1) there was a final blow-off to the downside,
(2) the blow-off occurred during a market correction,
(3) both companies suffered the spike down because of the end of double digit revenue growth
(4) both companies nevertheless had a lot of cash on hand
(5) both companies warned of slow growth for the next several quarters
(6) both companies were suspected takeover candidates, even at the time of the down-spike.
Now, ASND had a killer product, ATM, in a hot sector, internet bandwidth, that allowed it to climb out of the basement pretty quickly. That is why I had stayed put when ASND traded at 22.
I'm not sufficiently familiar with ADPT's products to know whether the same holds true for this company. If not, the climb back may be slower than it was for ASND. Still, once revenue growth returns, I think there is no question but that the stock price will as well.
Gary Korn |
