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

To: Starowl who wrote (4251)	1/9/1999 9:38:00 AM
From: Dougerdad	Respond to of 5944

A high end RAID card won't help much. However, strong Storage Industry fundamentals have helped several companies from rising from the dead (witness QLogic and Emulex). The problem is that the high end RAID market has small volumes associated with it, and Adaptec is still the new boy on the block (and late to market). OEMs are slow to change suppliers. The positive side is that demand for Storage i.e. RAID and SCSI on the low end has exploded. Since Adaptec has their business model in line for now, Adaptec stock will continue to rise Others which are benefiting (and the market has not noticed): LSI and Mylex. Mylex is a pure RAID play. They are not in the SCSI host adapter business any more. My understanding is that they are roaring back with several new OEM deals. Their low end RAID has no "real" competition. LSI is another interesting play. With Symbios acquired and consolidated, they are now focusing on fundamentals. LSI has strong Fibre Channel technology. This plus a strong SCSI legacy will be an engine for growth. Dougerdad

To: Starowl who wrote (4251)	1/9/1999 10:43:00 PM
From: Jim Switz	Read Replies (2) \| Respond to of 5944

Starowl: "You have estimated outstanding shares to be about 98 million. Does that mean you think the company spent all of the authorized $200M for an average share price of about $13 (about 15 million shares?) since October?" No, not exactly. If I have my figures right, they had about 108M shares outstanding as of the last report ending Sept. 30, and I'm just estimating a 10M share buyback - around 2/3 of the $200M authorized having been spent, at an average of about $13. Just my guess, but I'm thinking they're somewhere south of 100M shares by now. This reduction in shares outstanding would be a significant contribution to the greater-than-20-cents earnings figure. We'll know in 2 weeks, if all goes well.