Buying T and ADIC today for different reasons. But both near bottoms and sell-off finished IMHO. T should be a nice steady climber out of the basement as its condition is much stronger than reported. My target's $49 now at $30. ADIC I could see tripling here this year as it's SO cheap and has 200 mill cash with only a 600 kmill market cap. Plus they're in storage and their large holding in CRDS just popped 50% off the bottom. Here's more from an expert. My target's $30, now at $14.
High of $50, now at 14
Very low p/e extremely low compared to sector
Chase H&Q analyst, William Lewis, has increased price target to $40. [post split]...and says "BUY"
5/18/00 SunTrust Equitable Advanced Digital Raised to 'Strong Buy' at SunTrust Equitable
5/18/00 Dain Rauscher Advanced Digital Info Raised to 'Strong Buy' at Dain Rauscher
5/18/00 Needham & Co. Advanced Digital Info Reiterated 'Buy' at Needham & Co.
CHART: - average volume 1.5 million
stockcharts.com[PB10!B20!B50][VC60][ IUB14!LA12,26,9]
ADIC is in the largest growth arena of tech stocks. EMC is the leader. Data Storage Libraries. NEXT QUARTER their sales to IBM are going to kick in after launching new product.
They oem to Dell, IBM, Compaq, Siemens, etc.
HOMEPAGE:http://www.adic.com/US/English/Company/profile/index_nav2.html
Here are the basics to know:
$220 million in cash -- Cash Rich
Growth rate 35%
Rev Growth 20%...ready to make a major leap
Chase H&Q just sent out a report stating they expect E.P.S to grow at a rate of 25% over next 3 years.
ADIC using last 4 quarters earnings:
at $18 p/e = 35
at $26 p/e = 50
(yahoo low p/e reflects the sale of CRDS shares where they made a ton of money).
Beat earnings estimates 6x in a row.
* * Recently beat up on the charts because of Nasdaq sell off. They beat earnings estimates, but missed revenues because about 4 orders were pushed into the current quarter. This missed $2m in revenues will now be shown in the next statement plus all the other new orders from new products.
***** Revenues for the past three quarters have been increasing $62.9m, 63.9m & 64.8m. The company has given guidance that the next quarter will be $70.9m. Their guidance is $6.1 million increase in revs from last quarter!
Stellar Balance Sheet GROWTH wsrn.com
Now they say the growth is going to accelerate. ($6.1m increase in current quarter is the guidance from company. This would equate to an increase from 0.14 e/s to 0.16 e/s ! Yet analysts have yet to increase their estimates of 0.14.
Numbers suggest ADIC will be beating analysts estimates 7x in row !
* * messages.yahoo.com &mid=9215
FORWARD LOOKING STATEMENTS: (we just entered the 2nd half)
1. "accelerating growth in the second half of 2000,''
2. "improving gross margin as a percent of sales"
3. "ADIC said revenue growth is expected to accelerate during the second half "
4. NEW PRODUCTS: market acceptance of the Scalar 100 |
