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Technology Stocks : Adobe (adbe) opinions
ADBE 356.43+1.7%Dec 12 9:30 AM EST
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To: country boy who wrote (1760)9/24/1997 1:35:00 AM
From: earthling   of 3111
 
Here's a theory. Adobe is laying the groundwork for making a larger-scale acquisition, the type that involves stock swaps rather than venture capital. (Macromedia comes to mind.) By announcing it's going to support its own stock's price, Adobe is improving its leverage for making such an major acquisition. Maybe not the main purpose of the stock buy-back but certainly a helpful side effect.

Personally, I don't see the logic in selling out right now in the low 50's in the hope of buying back in the mid 40's. Were it not for the price-support policy, this tactic that has worked for many people over the past year and a half would still make sense. But I think now we're just seeing a bit of consolidation and soon the price will climb into the mid-50s. I doubt it will drop back under 50. The "story" on Adobe is "no longer just Mac." Combined with the "Now in the S&P 500" it finally puts Adobe in the ranks of the mainstream, safe growth companies. I believe this psychology will lift the price.

To all those who were watching when the Frame acquisition took its toll: At the time, many observers said, "Adobe's got good management. It'll take a year or two, but they'll get things back on track." Well, those observations were certainly correct. Once again, Adobe's management has shown just how truly excellent it is. Adobe may not be the rabid company Microsoft is, but you get that same feeling that someone who really knows what's going on--the programmer/founder(s)--is firmly in charge and taking care of business.
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