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

To: Patrick O'Connor who wrote (2608)	6/12/1998 12:55:00 AM
From: James Harold Alton	Read Replies (1) \| Respond to of 5944

Patrick, I was really impressed by how well ADPT held up in the awful market today. A number of the really beaten up techs actually ran up today against the tide so maybe some interest is returning to this sector. With the earnings downgrades it appears to me that while a correction was in order, that it was over done..the good companies good clobbered right along with the weaker ones. I understand the W/D is technically in default of some of it's bond provisions for instance and losing big $$, yet ADPT, which is cash rich and well in the black got clobbered about the same % wise. I originally just bought for a quick flip, but after studying the fundamentals some, decided to double up and keep some longer term. I feel for those that are holding from much higher prices, I have been there too. I think that there is some good value here and that these are fire sale prices..time will tell for sure. James

To: Patrick O'Connor who wrote (2608)	6/12/1998 11:25:00 AM
From: Mark	Read Replies (3) \| Respond to of 5944

A question for all. When ADPT closes its purchase of Symbios ADPT should have a PE of 6 to 8, a price to sales of 1 to 1.1, some additional pricing and margin control provided by owning some production, where do you think ADPT will be headed price wise? I'm thinking short term back to $19 to $20. Patrick, 1) How do you figure a PE of 6 to 8 ? Do you have ANY figures for Symbios' profitability ? What do you think their earnings will look like by the time ADPT own them ? 2) Agree about the PSR numbers, but don't yet see these as "attractive". My buy point is a PSR of about 0.5 to 0.75 (according to the state of the market). (See - Message 4399826 ) 3) "Owning production" - many here see this as a mill stone. i.e. it will cost a lot of money to keep the fab competitive........ (I haven't made up my mind on this aspect). 4) I'm thinking short-term that the market is melting, and we might see < $10........ Mark