Adaptec (ADPT) Message Board

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Technology Stocks : Adaptec (ADPT)

ADPT 17.10

-8.5%

3:59 PM EST

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To: Zeev Hed who wrote (2231)	5/18/1998 1:12:00 PM
From: slob	Read Replies (4) of 5944

Zeev, I'm in so lets see a bounce back to $20. Looks like the "ridiculosly" level has been reached, low $15 9/16, missed it by a 1/16. Anyway I agree with you that most of those calling for $10 have opinions that change with the prevailing wind. I don't think that ADPT is without risk because if SCSI gets replaced by 1394 or fiber channel than ADPT looses the system's level control that has enabled them to get high gross margins. ADPT looks like one sick puppy if gross margins fall to around 40%. I'm also concerned that incorporating Symbios will not be problem free. From what I've seen ADPT does an excellent job at managing inventory but remember they are fabless, managing a fab is a much more difficult problem. With a fab come all the problems of fab utilization and process development, yield etc. This will present ADPT's managers with a real test of their capabilities and the breadth of their knowledge. Could translate into some ugly earnings statements if they are found wanting. Slob

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