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 : Adaptec (ADPT) -- Ignore unavailable to you. Want to Upgrade?

To: Jasman who wrote (1018)	2/11/1998 2:52:00 PM
From: Bong Lewis	Respond to of 5944

be patient. the stock is trading below its instrinsic value (29). solid fundamental and balance sheet. valuation is very low. time and patient is money.

To: Jasman who wrote (1018)	2/12/1998 7:57:00 AM
From: Starowl	Respond to of 5944

Jasman: If by "the public" you mean folks like us, I doubt we have much influence on the price of this stock. Last I checked, institutions, defined as those having $100M or more in assets, hold approximately 89 percent of Adaptec shares. I think we are not likely to see much upward movement for several more weeks/months, probably not until we get nearer the end of the quarter. Adaptec projected earnings for this quarter on a par with last quarter. Presumably this will not raise expectations and meeting or exceeding the reduced estimates may be all that is needed to start the climb. I believe we are in a "show me" situation. Starowl

To: Jasman who wrote (1018)	2/12/1998 8:37:00 AM
From: Starowl	Read Replies (1) \| Respond to of 5944

Jasman: Just checked a report on Adaptec. It projects flat earnings for next six months or so. Assessment is that company is suffering from inventory buildup in distribution channels and apparently weakened demand for its SCSI adaptor cards. Also, the report notes disk drive maker inventory buildup has hurt sales of Adaptec microcontrollers but projects the company can sustain its 60-62 percent gross margin rate and control operating expenses. Given projected overall growth in the server and high-end desktop market, according to this analysis, Adaptec's products will do well in the long run. But share price not likely to do much for six months. "Lackluster" sales growth in that period. Cites uncertainties with Asia problems on the technology sector and product sell-through via distribution partners. Above is excerpted from S&P report, which admits being surprised by the company's shortfalls last quarter. Prior to the earnings report, this service in early January rated Adaptec strong buy and five stars. Now it gives it a hold rating. This is why I believe institutions will be just toying with the stock until positive signs of inventory movement appear. Wait-and-see mode. Starowl