SI
SI
discoversearch

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 18.62+14.1%Nov 21 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mark who wrote (1565)4/3/1998 9:41:00 AM
From: gda  Read Replies (2) of 5944
 
Mark, whats in the P/E?

I am not a professional trader but I do run a hi-tech company that happens to be involved in Symbios/Adaptec business. I would like to ask you a few questions (excuse me if they seem like stupid questions to you) :

1. If the valuation of the stock is determined by the P/E, what will happen to it after the Symbios deal goes through:
A. It will double, because Symbios earnings are at least as high as adaptec's
B. It will triple, because redundant costs will be cut which will drive the combined company's earnings even higher.

2. If the valuation is determined by the PSR wouldn't it double after the Symbios etc. since the combined company will have close to have doubled adaptec's sales?

As I said, I am not a professional trader and do not have the time to research all aspects of a company's valuation. Of course, I have raised the questions above not because I believe the stock will double or triple right away, but because I think this acquisition was a brilliant move that will HAVE to have a positive effect on the price!

Regards,

gda
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext