| An SI Board Since January 1997 |
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ADIC |
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They say you can't keep a good company down.
Well ADIC, a recent spin-off, has doubled to $20.00 since reaching its low around November 1.
So it's probably overvalued, right? Another one of those momentum plays with a bubble about to pop? No, I don't think that is likely.
ADIC came through with 41c earnings in fiscal 1996. Mean estimates are 71c for f1997.
It is a company with superior products that hasn't quite been picked up by the "big names" yet. Jeff Vinik, former (but mediocre) manager of the Fidelity Magellan Fund was one of the first to buy in and recently trimmed his position, again demonstrating his knack for selling a winner too early (yet for some reason he excels in holding on to his losers).
The stock, having reached $23.00, paired back about $5 on the news before realizing who the seller was.
As for the company's actual products, they are fantastic. Bang-for-the-buck ATL's (automated tape libraries) for UNIX and NT servers. No competitor seems to come close and there does not appear to be a limit on how far the company can go with the current line.
As with any recent IPO or spin-off, Advanced Digital has its doubters. Yet in my and many other opinions, this company and its stock are heading for even brighter days in light of the fact that it is a 70% grower trading at 45 times earnings.
Please inform us of your opinions, but be they positive or negative please try to back them up with hard-core truth. That is something that was perhaps lacking on the "other" thread.
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