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Technology Stocks : Adaptec (ADPT)
ADPT 18.55-2.7%Jan 23 9:30 AM EST
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To: slob who wrote (2266)5/18/1998 1:34:00 PM
From: Jim Switz  Read Replies (1) of 5944
 
Slob said:

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.

I think that's true as far as it goes, but ADPT has in the past been adament about NOT owning a fab, and has invested tens of millions of $$ into TSMC to procure guaranteed fab-vendor capacity. If the 8-incher that would come with Symbios is a production line (I assume it is) it wouldn't surprise me a bit if ADPT puts it up for sale very soon after the deal closes. They've got enough on their plates without having to learn an entirely different, and somewhat unrelated, business model.

Speaking of which, any FTC-savvy people out there? Given that ADPT said they requested more information a month or so ago, would we have heard by now if the FTC had serious problems with the deal? Or do we have to hang on down to the wire next month to know if this deal is likely to close?

And, like most of the rest of you, I'm awfully punch-drunk this year and can't wait for this long headache to end. In the $50s! ;-)

Jim
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