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

To: David W. Taylor who wrote (2022)	12/13/1997 8:09:00 PM
From: Patrice Gigahurtz	Respond to of 3111

David, I'm actually long term focused. However, I like to write covered calls while I hold my stock. Thus, my interest in the five day duration Dec35 ADBE call is purely related to that specific aspect of my total investment style. I hope to not be called away this Friday. Why ? Because I want to again write a ADBE covered call when we approach the Jan call expiration; and so on throughout '98. Again, I'm hoping to keep the underlying ADBE stock; its the short term call writing that provides an additional source of income. Thus, my short term interest in ADBE is relevant only with regards to ADBE covered calls and not the underlying ADBE stock. Over the last two years, hasn't ADBE exhibited some hefty swings. Now here we are, late '97, and I'm paying early '95 & '97 prices for ADBE ! Thus, over the last 22 months, theroretically, one could have made more profits short term trading ADBE than just buy and hold.

To: David W. Taylor who wrote (2022)	12/13/1997 8:28:00 PM
From: earthling	Read Replies (2) \| Respond to of 3111

If EFII is any indication, ADBE's price could certainly be severely hammered in the coming weeks. Americans are only beginning to realize how acute the Asian problems are, and Adobe's profitability is very heavily dependent on Japan, Singapore, Hong Kong, and Korea. But who's kidding who? If you take a 3 to 5 year horizon, this year's macroeconomic factors and this quarter's profitability are not that important for the computer industry. Companies like Adobe are loaded with cash and can just ride it out. The important factors, at least to this investor, are the natural widening out of a sector, and who has good prospects within the sector. Graphics is a great sector, and companies like ADBE, EFII, MCRE, and MACR all are well positioned. I follow Warren Buffett's point that the lower a stock's price, the lower the risk of holding it--assuming the reason for the price going lower isn't a deterioration in the long-term prospects of the company, which certainly isn't going on here. So once a price is at a favorable point, as Adobe's is now, I can justify loading up on increasing amounts the lower it goes.