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

To: Patrick O'Connor who wrote (2628)	6/12/1998 3:50:00 PM
From: Doug Skrypek	Read Replies (2) \| Respond to of 5944

The bottom has been made. Quarter end window dressing is over. Panic selling has come and gone. Base is forming. Next stop 15 for option expiration-next Friday. This company is cheap, when the Symbios deal closes it will truly be a world class company. Stop trying to pick the bottom folks, you will miss the train as it leaves the station...

To: Patrick O'Connor who wrote (2628)	6/13/1998 7:58:00 AM
From: Mark	Respond to of 5944

Why would you be happy with a PSR of .7? That to me would indicate that ADPT had serious irrevesible problems not just change and competition to manage and deal with. When Symbios deal closes they will be at a price to sales of approx. 1 in an industry with an average of 2.73, a sector with an average of 5.94 and the S & P 500 average of 3.57. Patrick It depends which "industry" you associate ADPT with. More than half of their revenues are associated with the disk market. If you look at other companies in this area they have current PSRs (approx) - APM - 0.34 WDC - 0.35 RDRT - 0.37 QNTM - 0.50 SEG - 0.7 Anyway, that's not how I arrived at the PSR "threshold" that suits me. I looked at the size of their revenues, and what I think their likely profit margins will be as the SCSI market becomes increasingly commoditised. PSR is just a simple way of expressing this. (Another poster here was talking about buying into WDC. FWIW the ONLY DD stock I am currently long on is QNTM - They seem to me like the only innovative company in this sector, with good product diversity and great management. I bought quite recently, and will be averaging down should more opportunities arise). Mark