Silicon Investor (SI) -- The First Internet Community

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 : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (10633)	7/17/2000 6:11:06 PM
From: John Carragher	Respond to of 17183

ow Jones Newswires Advanced Digital Up 19% On Rumor That EMC Will Buy Co. Dow Jones Newswires By Donna Fuscaldo NEW YORK -- Shares of Advanced Digital Information Corp. (ADIC) closed up 20.6% in regular trading session Monday on a rumor that it will be bought by EMC Corp. (EMC), a large data storage company. Although investors snapped up shares of Advanced Digital on the rumor, analysts interviewed by Dow Jones Newswires said the rumor is illogical. The rumor "makes no sense," said Glenn Hanus, a research analyst at Needham & Co. He noted that EMC's Chief Executive Michael Ruettgers has publicly stated that tape storage is a dying phenomenon. Advanced Digital provides software, automated tape storage libraries and storage area networking for workstations and networks of personal computers. A spokesman from EMC Corp. said the company "can't and won't" speculate on rumors. Steve Whitner, marketing director at Advanced Digital, said he has not heard of any such rumor. He directed all additional questions to the investors relations department, which has yet to return calls. Shares of the Redmond, Wash. company finished the trading session up 20.6%, or 2 11/16, at 15 3/4 on volume of 4 million compared with average daily volume of 1.7 million. In the after-hours market, Advanced Digital shares continued to climb at 16 11/64, according to Reuters Instinet. The rumor isn't hurting Advanced Digital, said Bill Lewis, an analyst at Chase H&Q. "The stock has been beaten up and people are looking for an excuse to get in," he said. Lewis said that the rumor is probably false. Given the public comments EMC has made about the death of tape storage, it doesn't make sense, he said. "EMC is the world's largest independent storage company that could make an acquisition like that without batting an eye," he said, explaining why investors would believe the rumor. The only thing that would interest EMC would be Advanced Digital's emerging software product, he noted. Lewis added that Advanced Digital is a volatile stock that has been off in recent weeks. In March the stock hit a high of 50 1/2. Emily Taggart, a spokeswoman for Advanced Digital, said the company never comments on rumors. As for the stock's run-up Monday, Taggart said the only thing she's aware of is the EMC rumor. -Donna Fuscaldo, Dow Jones Newswires; 201-938-5253