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

To: Adam Weiner who wrote (3809)	10/2/1998 10:13:00 PM
From: Jim Switz	Read Replies (1) \| Respond to of 5944

Adam, good post. I can't think of a thing to add, and in my thinking about Quad's posting missed a couple of points you mentioned. Appreciate the succinct reply; now all we have to do is convince the rest of the world that ADPT is undervalued. Although fabless, ADPT has invested several tens of millions in TSMC (Taiwan Semiconductor Mfg. Corp.) over the years to ensure priority fab capacity. They may not need it at the moment, but they have taken their fabless orientation seriously and have tried to ensure they can have the chips they need anyway. My guess is that fab capacity worldwide is no problem at the moment, but I'm not an expert and maybe ADPT still needs specialty lines for their products that may be in tight supply. So now my question is: when does this dog get off the floor???? I believe it's 10 trading days in a row now without a close to the upside. I don't think I've ever seen that before in this stock, and I have data back to Jan. '89.

To: Adam Weiner who wrote (3809)	10/3/1998 10:49:00 AM
From: Spartex	Read Replies (2) \| Respond to of 5944

Adam: <<Plus, ADPT has an established franchise with strong brand recognition with market-share and IT mind-share leadership; in many respects, VLSI is just another capital-intensive fab looking for more chips to make to justify their heavy investments (fab capacity is the commodity of the 90's). In short, the two companies cannot be compared using the same valuation metrics .>> If what you say regarding ADPT: established franchise, brand recognition with market-share, and IT mind-share leadership, ADPT should be trading over $12 bucks or better. Since it is not, and I realize that stocks stretch both to the upside and downside, what's missing from this company and its dismal share price?? Since I haven't followed the company too closely, my comments would be surficial -- losing its technology edge (transition to new product lines) or that there is a decrease in demand and pricing for its products. And finally, what about the CEO and his leadership abilities? These are just unanswered questions in my mind at the moment. I'd appreciate any thoughts by seasoned ADPT followers. Oh, I would also appreiciate your clarification regarding what VLSI doesn't have that ADPT does have, yet they are both in the dumper price wise. VLSI does make specialized chips, not just your usual DRAM or SRAM types. I agree metrics are different, but when the Asian contagian does turn around, VLSI will pop quickly from the mid-7's to 11-12 price range IMHO, as will ADPT most likely. Downside risk for VLSI is minimal, and upside is attractive when the time comes. I don't own any VLSI at the moment, but am looking for some dogs to buy if I decide to sell some NOVL. Regards, QuadK