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

To: Jim Switz who wrote (2939)	7/10/1998 12:26:00 PM
From: Doug Skrypek	Read Replies (1) \| Respond to of 5944

It looks like ADPT is going to be dead money until we get POSITIVE news of some kind.

To: Jim Switz who wrote (2939)	7/10/1998 6:31:00 PM
From: jelrod3	Read Replies (2) \| Respond to of 5944

Thanks for the post, Jim. The news sure is "not good." At current estimates, the stock is selling at a PE of 27x fy99 EPS...not real cheap when one considers that the 5 year high PE average is 24.5x, and in its heyday, the stock was selling at a multiple of 28 to 30x. From a price to sales ratio standpoint, however, the stock does not look all that bad...I am counting on a terrific slowdown in revenues for the quarter and the year, which will put the revenue per share way down to about $5.60 per share annualized, for a current PSR of 2.3x. This is well below the average PSR over the last 5 years, and on this basis, the stock is a probable buy. But alas, more bad news is undoubtedly on the way, and the price could reach single digits as holders flee the stock for better investments.