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 : Adobe (adbe) opinions -- Ignore unavailable to you. Want to Upgrade?

To: laleh who wrote (1905)	10/24/1997 8:24:00 AM
From: Mark Palmberg	Read Replies (2) \| Respond to of 3111

<The only way their down trend can impact this and other similar stocks is shaky investor nerves, sympathy, ignorance.> I don't suppose you saw the Cryer Report last night? Very interesting talk with a gentleman (I didn't catch his name) who was talking about market analysts and what their functions are. He pointed out that a good many analysts, rather than doing statistical homework on charts and so forth, spend their time gauging the psychology of the current market. Ignorance, sympathy, and herd mentality are the ruling triumverate over this current market. Regardless of whether or not an Asian ever even downloads a copy of Acrobat Reader, 'bad' news from Asia is cause enough to send stupid, scared "investors" running for cover. On a related note, I have a friend who works as an investment advisor for a large mutual fund company. He routinely receives calls from customers who, noticing that the mutual fund they recently invested in has gained only 24.5% rather than the 25% percent that was forecast, are frantic to figure out somewhere else to put their money. He tells them, as he should, that when they invest in a mutual fund (at least the funds from his company, which are some of the largest in the world) they should forget about that money -- consider it lost -- for at least five years. Realizing that your money is lumped in with the money of morons is not a comforting thought. Also consider that most of the folks influencing the market these days are the kind of people you wouldn't let borrow your pen back in high school. We're going to have some down time here the next couple weeks, but I'm betting the market will be back at full strength (and then some) by Feb. Keep your eye out for fire sales. Good luck today, and have a great weekend. Mark

To: laleh who wrote (1905)	10/24/1997 11:12:00 AM
From: Peter Shaw	Respond to of 3111

Laleh, ADBE derived 18% of it's revenue in 1996 from the Asia/Pacific, Japan, and Latin America segment. For operating net income, it was a far higher percentage, but that suffers from the vagaries of GAP (I suspect R&D is attributed to domestic operations). In any case, that is a fast growing part of the company, and weakness is already impacting Japan. Without the regional neighbors pushing forward on the economic front, this will hurt growth over the next few quarters. As software is not capital goods intensive, ADBE does not benefit from reduced supplier costs out of the Asian region. Good Luck, Peter Shaw