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

To: Jim Oravetz who wrote (2076)	9/1/2000 12:30:03 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 2283

Let's look at ADIC using the MM Growth Flow method: Note: I'm using July '99 numbers instead of Oct '99 numbers because of the purchase of MountainGate resulted in funky R&D expense for that Q Earnings 7/99: $4.54M 1/00 $7.2M 4/00 $55.9M 7/00 $14.3M 4Q total = $81.92M R&D 7/99: $3.44M 1/00 $3.95M 4/00 $4.12M 7/00 $4.37M 4Q total = $15.88M Divide each total by 51.560M shares yields: 4Q Earning per share = $1.588 4Q R&D per share = $0.308 GF= $1.896/sh Current price: $17 / $1.89 => P/GF = 9x Not real attractive by MM standards, just a hair under the normal range. However, the last two Q's have really inflated earnings numbers due to sales of Crossroads stock. 4/00 $7.6M 7/00 $4.9M without the stock sale "earnings". That adjustment yields P/GF = 22x. I am not a MM fan and IMHO this simplistic approach can not stand on its own. Just like any other stock validation process, more than one set of parameters is needed. Go ADIC! FWIW, Jim