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

To: rocky haag who wrote (2019)	5/3/1998 10:25:00 PM
From: Investor2	Read Replies (1) \| Respond to of 5944

Re: "ADPT great company remember they made .20!!!hello?" I believe you're correct. The part I liked was this: "Revenues for the 1998 fiscal year were $1,007 million, an 8% increase over fiscal 1997 revenues of $934 million. Net income for FY'98 was $173 million, or $1.46 per share, an increase of 61% over fiscal 1997 net income of $108 million and $0.93 per share." Not a lot of tech stocks in that boat, lately. biz.yahoo.com Best wishes, I2

To: rocky haag who wrote (2019)	5/4/1998 8:23:00 AM
From: jgercke	Read Replies (1) \| Respond to of 5944

Rocky, I think ADPT is a fine company, and it is certainly true that they have managed to retain profitability (so far) through this tough period. From an investment perspective, however, I am concerned about stock price behavior. Someone pointed out the favorable year to year comparisons, but the reality is that most of the good stuff happened in Q1 and Q2 of last fiscal year, with the final two quarters being very difficult. So the current trends are obviously not favorable. The problem right now, as I see it, is that estimates for F99 are likely to come down, which creates quite a headwind for stock price appreciation in the short term. I don't think it can be fairly said that they are "growing faster than a weed" at this point, and their cash position is essentially committed to the Symbios acquisition, although the CC indicated that they were lining up bank financing for 450mm of the purchase price. I too would not hesitate to accumulate if the stock gets "real cheap," and I wouldn't really be worried about the shares if I were looking out 3-5 years. But I see no compelling reason to jump back in here at this time because I don't like the short term reward/risk profile. jg