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

To: General Crude who wrote (1104)	2/24/1998 5:35:00 PM
From: The Philosopher	Read Replies (1) \| Respond to of 5944

<<Well, we are moving up today in a mixed market.>> Actually we moved up when all the major indices were down. Another example of the Hodgkin Rule of Adaptec Stock Movement--in case you missed it, the Rule says that Adaptec generally moves opposite to the general market. Has been true more often than not in the past few weeks! Watch for it and you'll see.

To: General Crude who wrote (1104)	2/25/1998 1:41:00 PM
From: Maverick	Read Replies (2) \| Respond to of 5944

RECONSIDERING ADAPTEC: An item here Monday took to task Milpitas-based Adaptec Inc. for quietly disclosing an expected revenue shortfall in a conference call with analysts, while individual investors heard only about the company's acquisition of a unit from the beleaguered South Korean conglomerate Hyundai. The item also might have pointed out that stock in Adaptec, which makes adapter cards that connect PCs and disk drives, had been a stellar performer before the disk-drive glut and the Asian flu knocked it down. Adjusted for splits, Adaptec's shares moved from below $8 in late 1993 to better than $50 last autumn. But past performance is little solace to investors who've watched their stock sink in value since. And just as Adaptec didn't shout out loud about its shortfall or the suspension of its stock buyback, it's also kept quiet about having re-priced employee stock options in late January. Many companies re-price options. Oracle Corp. (Nasdaq, ORCL) and 3Com Corp. are two recent examples. They, like Adaptec, say re-pricing is important to retain employees. But as has been argued here before, re-pricing options makes the compensation device more of an entitlement than an incentive. And it's a break investors don't get. Oracle and 3Com didn't reprice options for executive officers, but Adaptec did. Regular employees who re-priced options will have to wait six months longer than previously for the options to vest. Top management will have their vesting schedule pushed back a year. From San Jose Mercury News, 2/24/98