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

To: Bald Man from Mars who wrote (3106)	7/23/1998 7:58:00 PM
From: slob	Read Replies (1) \| Respond to of 5944

Baldy, looks like I might get a shot at $9 tomorrow. I've been standing on the sideline watching all the back and forth bickering and decided the best idea was for me to keep my head low, because experience tells me that this is one of those threads where they shot the messenger. I took a quick look at the earnings release and was amazed that they have managed to keep their gross margins above 55%, that was a heck of a feat in the climate that prevailed last Q. I've noticed in the past that Gross Margin is a parameter which ADPT trys to maintain at all cost. They seem to prefer to book lower revenue before they chase low margin business. There is a lot to be said for this business model, unfortunately it usually collapses at an operational level. I'll be looking closely for signs of of gross margin collapse when they try to clear the channels. Spotting falling margins usually rewards me many times over. One thing that's for sure is that this puppy will be in for a bumpy ride for the next quarter so I hope you've loaded up on Prosac and Zantax. Slob