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Technology Stocks : Adaptec (ADPT)
ADPT 18.07-1.0%Jan 13 3:59 PM EST

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To: Bob Huff who wrote (1059)2/20/1998 1:15:00 PM
From: Nevin S.  Read Replies (2) of 5944
 
I wonder if the downgrade by Soundview is in response to the acquisition of Symbios. All cash purchase means no dilution of EPS, but a more strained capital structure (the announcement indicated that they would use combination of cash on hand and additional borrowings). The depletion of cash may not be viewed as a good thing. On the other hand, EPS should not be diluted by the purchase and, in fact ADPT indicated that it would be accretive. Any comments?
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