jelrod3, I think the problem with Seagate is already priced into the stock:
MILPITAS, Calif., Dec 4 (Reuters) - Adaptec Inc.(NASDAQ:ADPT)
shares fell for a third day on Thursday amid rising concerns
that a slowdown in the disk-drive industry will mean slowing
sales of Adaptec drive components.
Adaptec shares fell $1.94 to close at $39.25 on trading of
9.73 million shares, making it the fifth most active issue on
the Nasdaq market. Since Monday, the stock has lost $10.875, or
22 percent, from $50.125.
Adaptec, based in Milpitas, Calif., gets about 20 percent
of its revenue from electronics for controlling personal
computer disk drives. Its customers include disk drive giants
like Western Digital Corp., which warned of weaker than
expected profits for the quarter.
"Drive controller chips have, we believe, seen weaker
demand," said Scott Randall, analyst at Soundview Financial
Group.
Company executives did tell analysts this week that weaker
disk drive sales could hurt its disk controller business, but
the rest of Adaptec's products -- high-speed connectors and
adapters for personal computers and servers -- remains strong,
said Bruce Frymire, Adaptec spokesman.
"Our host adapter business is looking stable," he said.
and this:
SINGAPORE, Jan 19 (Reuters) - Adaptec Inc said on Monday it
expected revenues in Asia outside Japan and South Korea to grow
in strong double-digits for its year ending March 1998.
"We're looking at revenues of about US$200 million for
fiscal 1998 -- kind of 30-40 percent growth," Chan Chee Keong,
Adaptec's regional sales manager for Asia Pacific told a news
conference.
This covers sales from its products used in systems and
peripherals in Asia outside Japan and South Korea, he said.
further on:
Adaptec officials on Monday said the profits warning was
referring more to a slowdown in the high-end desktop market in
the U.S. and weakness in the Japanese market.
They said the Asian financial crisis had had limited impact
on the company as it had little business in countries like
Indonesia and Thailand.
Most of its distribution was in Australia, Taiwan, Hong
Kong, China and Singapore, they said. |
