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

To: MarkM who wrote (2194)	5/15/1998 2:47:00 AM
From: Jim Switz	Respond to of 5944

Can anyone tell me in one sentence what the problem with this stock is? It's been beaten down 67.86% from its high, set on Oct. 7.

To: MarkM who wrote (2194)	5/15/1998 6:11:00 AM
From: Starowl	Read Replies (1) \| Respond to of 5944

One sentence? Here's a Faulknerian try. Adaptec has had two sequential quarterly negative earnings surprises after a long run of positive surprises, its management projects no business recovery for a couple more quarters, it is in the midst of spending three quarters of a billion dollars to buy a related business with the attendant uncertainty, cash depletion and new debt, various related law suits challenging its integrity are casting long, dark shadows over the company, it is heavily (ca. 85%) owned by institutions which have been burned by the precipitous drop in the stock price, and its core (SCSI) business is in a transitional period with challenges from other technologies, inventory backlogs, and falling prices. Those are some of the problems I see. It is looking a bit tarnished right now. This is a transitional period for Adaptec. The stock price will depend upon how well the company manages change. We will have a better idea of that in six months. I am betting on a recovery. Starowl