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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (31991)	8/14/2000 11:43:56 AM
From: American Spirit	Respond to of 57584

Chase HQ report on ADIC which has earnings coming out soon. Note it's $4 cash per share and nice growth. Currently at 14 1/2. "Until recently, the storage market was dominated by the likes of tech giants such as IBM (NYSE:IBM - news) and EMC Corp. (NYSE:EMC - news). But little-known Advanced Digital Information (ADIC), a former Magic 25 stock, has been quietly building a decent market share in the fast-growing sector. Over the last five years, the company has boosted sales at a 62% annual clip. Profits over that time frame have risen 152% annually. the stock looks cheap. ADIC has just released StorNext, ``a revolutionary combination of (ADIC's) library and software products that the company believes could create an entirely new appliance segment,'' writes Chase H&Q's William Lewis. Later this summer, IBM will ship its own branded versions of ADIC's Scalar 100 and FastStor product lines. Lewis is ``expecting material revenue from both IBM and StorNext to build from the third quarter, leveraging the top-line in 2001.'' After earning $0.46 per share in October 1999 fiscal year, ADIC is expected to earn $0.58 a share this year and $0.73 a share in fiscal 2001. Considering that the company has topped estimates for six straight quarters, those estimates are likely quite shy. In addition, thanks to the recent sale of a stake in Crossroads Systems (NASDAQ:CRDS - news), ADIC is now sitting on $221 million ($4.08 a share) in cash. ------------- William Lewis maintains a Strong Buy rating and target price of $40 next Spring.