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Technology Stocks : ADI: The SHARCs are circling! -- Ignore unavailable to you. Want to Upgrade?

To: Tom Caruthers who wrote (759)	1/14/1998 1:01:00 PM
From: Meghan Richards	Read Replies (1) \| Respond to of 2882

I agree with Tom that ADI is fundamentally strong. In fact, the IBD gives ADI an EPS ranking of 81 (i.e. it ranks amongst the top 19% of all listed securities in terms of earnings-per -share growth rate). Technically ADI is not looking that strong. It's Relative Strength is a dismal 31 (i.e. 69% of all listed securities are outperforming ADI in terms of share price appreciation). IBD also gives ADI and accumulation/distribution rank of an 'E' (it's lowest score), which basically means that ADI is experiencing heavy distribution. So while Tom is correct that ADI is fundamentally strong, Filippo is also correct that it is technically weak. You have to decide whether you're basically a fundamentalist, or technologist, when it comes to holding a position in ADI. Personally I like to see a security be fundamentally and technically strong. If I had to decide between the two, I'd weight technical performance over fundamental performance. My reasoning is that fundamental performance is more of a measurement of past performance which is generally already worked into the stock price, while technical analysis is more a measure of how the stock is performing right now (which isn't favorable for ADI at this moment in time). ADI is a great company, with great products, great people and fantastic management ... so I watch it closely and wait for its technical performance to improve.