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

To: The Philosopher who wrote (2336)	5/20/1998 12:52:00 PM
From: Mark Brophy	Read Replies (2) \| Respond to of 5944

I don't pay a premium for growth. Most companies have alternating periods of earnings growth and contraction or stagnation. A better valuation indicator is book value. You're probably getting a fair deal if you pay 3x book and it's time to sell when it sells at 4x book value. It's time to back up the truck when it sells at 2x book. As long as they're not losing money, I reckon it's a good valuation method. The current book value is $7.76 and P/B is 2.3. Another solidly profitable company for many years in the PC industry with P/B at 2.0 is Phoenix Technologies (PTEC). They haven't grown as fast as Adaptec, but their earnings are more consistant.