Adaptec (ADPT) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Adaptec (ADPT)

ADPT 16.13

+1.4%

Dec 17 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Starowl who wrote (1088)	2/22/1998 4:05:00 PM
From: Cary Salsberg	Read Replies (1) of 5944

Starowl, Zeev, ADPT is paying 1.25 times $620M trailing sales and 11.2 times $69M trailing earnings. This has been called a "fire sale" price. The market demonstrated zero confidence in ADPT management, Friday, in the face of the obvious reasons for the sale and the "reasonable" price. Below, I have summarized the numbers from ADPT's previous balance sheet and the reports of the purchase. I bought some at $20.875 after the earnings disappointment and I hope the market will continue its disrespectful attitude toward management and push the price toward $20 again. Cary Before: Cash $ 728M Current Assets $1,023M Assets $1,293M Current Liabilities $ 190M LT Debt $ 230M Net Worth $ 871M Transaction: Cost $ 775M Goodwill $ 400M Writeoff $ 200M Est Tax Saving $ 56M New Assets $ 475M New Liabiities $ 100M After: Cash $ 53M ($728M - $675M cash payment) Goodwill $ 200M Assets $1,149M ($1293 - $200M writeoff + $56M tax saving) LT Debt $ 330M Net Worth $ 727M ($871 - $200M + $56M tax saving)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next