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

To: George Dawson who wrote (2380)	5/25/1998 2:10:00 PM
From: gmccon	Respond to of 5944

Please excuse me if I ask the occasional dumb question. I am here to learn and share. I've been "watching" ADPT for a month or two based on it's recent "tanking" (I'm bottom fishing of course), and it's potentially lucrative acquisitions. Everyone knows there are billions to be made in the next few years re data storage. And, obviously, this puppy could 4-bag, or more, when it takes off. It has so much going for it and now a very low P/E. My reading tells me that beginning last year ADPT has positioned themselves for a major move into actual enterprise storage itself. They are going to OEM and vendor full-on storage systems via the Ridge Tech deal. Do I understand correctly? Greg

To: George Dawson who wrote (2380)	5/25/1998 4:18:00 PM
From: Doug	Read Replies (1) \| Respond to of 5944

G.D: Your clip about a possible FC breakout was reassuring. My experience has been that invariably Companies and their Shareholders often get caught during Product transition. Let me give you 3 examples. NN a ATM vendor was caught when TDM sales crashed. CS a Networker fell when Hubs gave way to Routers. Lastly EK a leader got caught in the change over to digital recording. All these Companies were Market Leaders with excellent state of the art Technology ,excellent R&D facilities and attractive web sites. However they had dual product lines. Forecasting and balancing Inventory during that transition phase can be tricky especially when the Competition declares an all out price war. In many cases, this leads to subsequent write downs of Inventory/Layoffs etc. The recent acquisition appears to have compounded the problem and may be the most important point in understanding where we could be headed.