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

To: Tom M who wrote (2772)	6/25/1998 10:45:00 AM
From: The Philosopher	Read Replies (1) \| Respond to of 5944

I'm not sure I'd call it the best news in 6 months, but it certainly resolves a lot of uncertainties. My first thought, too, was stock buy-back time. Anybody have time to call Rachel at IR and see what the plans are now? I'm leaving shortly on 4-day trip and since you always have to wait for a callback I can't do it. Street seems to like the news -- up nicely so far today. Went over 17 overnight, now seems fairly steady at about 16-1/2. And at least we don't have to worry about what to do with the fabs!

To: Tom M who wrote (2772)	6/25/1998 11:01:00 AM
From: Pravin Kamdar	Read Replies (1) \| Respond to of 5944

Tom, I think this is the best news in 6 mths. What you don't know can hurt you. Adaptec wanted the merger in the first place because they knew that Symbios was about to start eating their lunch. Now, Adaptec is back to a narrow, dead end product line (even the new iMac doesn't have a SCSI port). Symbios is having their strongest quarter ever, while Adaptec's earnings are dropping off; not to mention the extra $20,000,000 they just flushed. I'm bitter because I bought ADPT betting that Symbios would be able to turn them around. Now we're all sunk. ADPT is only up a dollar on the merger break up news. They dropped $10 on the merger news. Maybe they can use that 750 million to buy a startup company that has a future. Pravin.

To: Tom M who wrote (2772)	6/25/1998 11:06:00 AM
From: Mark Brophy	Read Replies (1) \| Respond to of 5944

A $20m loss is good news? There was nothing questionable about this acquisition - it was a steal. The low end of the SCSI business where Adaptec is strong is getting killed and the high end where Symbios is strong is booming. Symbios is hiring engineers at a furious rate and is constructing a new building for them. The company repurchased shares at 20 and I'll be selling out when it rises above 20. I'll be furous if the government also disapproves the Phoenix-Award merger!

To: Tom M who wrote (2772)	6/25/1998 11:14:00 AM
From: Dr. Johannes Bruski	Read Replies (1) \| Respond to of 5944

Tom: the news is that Adaptec will take a $ 20.000.000 charge due to the failed acquisition. Now if that means an immediate deduction of 20.000.000 this quarter, per share income will drop by approx. 17 cents per share (20.000.000 divided by 116.558.000 [no. of outstanding shares]). Given that IR indicated - I refer to an earlier post - that Adaptec might meet estimates for this quarter of approx. 20 cents per share, is it not quite probable that, if that statement did not anticipate the cancellation of the Symbios deal (which I think is probable), this quarter's earnings will fall way below estimates, even if interest income for the next two quarters may well be something like $ 20.000.000. Before one buys more stock, it may be wise to wait for the earnings report for this quarter. Or am I wrong? Regards, J. Bruski