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Technology Stocks : Advanced Digital Information Corp. (ADIC) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Oravetz who wrote (1938)	5/11/2000 2:23:00 PM
From: drsvelte	Read Replies (1) \| Respond to of 2283

=DJ Advanced Digital Up -2: 2Q Results Due Next Tuesday>ADIC NEW YORK (Dow Jones)--Advanced Digital Information Corp. (ADIC) soared as much as 17.2% in a session when most tech stocks were in the red, a move that the company and analysts were hard-pressed to explain. The volatile stock, which is a favorite among momentum traders, was recently up 2 7/16 to 17 3/8 on volume of 1.8 million shares. It earlier rose to 17 1/2, from Tuesday's close of 14 15/16. Analysts said there was no news from or about the company that justified the rise. Analysts' puzzlement was echoed by Chief Executive Peter van Oppen. He said that "there's no explanation for the strength of the move" and suggested the stock might be recovering some "precipitous losses" it had incurred in recent sessions. Van Oppen made similar remarks Tuesday in an interview and to investors at Chase H&Q's technology conference Tuesday. "No news is good news in this case, where the stock has dropped so dramatically," said Bill Lewis, an analyst at Chase H&Q with a buy rating on Advanced Digital. The fact the company didn't preannounce, he said, eases fears that "they would miss the quarter or something was falling apart in a major way." Advanced Digital, which makes automated tape libraries for computer networks, has been on a wild ride. Its stock soared 900% in the 12 months leading up to its March 1 split-adjusted high of 50 1/2. It has fallen 70% since, shedding nearly $2 billion in market capitalization. Glenn Hanus, analyst at Needham & Co., who has a buy rating on the stock, said the company currently trades at 20 times 2001 earnings projections, which might be attracting investors looking for a "reasonably priced" growth stock. The Redmond, Wash., company is expected to release its second-quarter results after the market close next Tuesday. Hanus said he expects the company to meet or slightly exceed earnings estimates, but isn't looking for a "blowout" quarter. The consensus earnings estimate is 13 cents a share. -Marcelo Prince; Dow Jones Newswires; 201-938-5244 (END) DOW JONES NEWS 05-10-00 03:32 PM