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

To: Jim Oravetz who wrote (2200)	7/4/2001 11:55:41 AM
From: DELT1970	Read Replies (1) \| Respond to of 2283

From an investment newsletter: Advanced Digital Has Growth In Store (ADIC) Though data-storage stocks performed poorly in recent months, the sector remains one of high tech's bright spots. Demand for data warehousing space and connectivity should remain strong while the broader market recovers. That's why Rich Moroney advises buying Advanced Digital Information (ADIC). He likes the firm as it offers a broad line of products that work on a variety of storage technology platforms. ADIC makes tape automation and storage products. The firm does not make tape drives but rather software and peripherals for storage area networks and network-attached storage appliances. Since the company does not make tape drives, it can support many popular technology platforms. So instead of being defensive during today's tech-storm, ADIC is investing heavily in product development and marketing. Growing sales to OEM clients like Dell, IBM and EMC attest to its success. An acquisition launched ADIC into the lucrative higher-end storage market, but it also diluted shares. As such, earnings should drop to $0.48 per share this year vs. $0.51 last year. Moroney says Wall Street's EPS estimate of $0.71 for 2002 is "optimistic" but adds that the company seems capable of 20% annualized profit growth for the next five years. Margins are already rising and management predicts 35% to 40% sales growth next year. Moroney rates ADIC "accumulate" but says a solid performance next quarter could prompt an upgrade that advice to "buy."