I wonder what is keeping ADPT from realizing its true value? Here is a company that has ROCK SOLID financials, a preeminent position in its marketplace and is sitting on a treasure trove of cash. In fact, ADPT has over $3.00 in cash for every share in the float. They currently operate at a manageable loss (what company in this sector doesn’t), but I will be interested to see what happens if the data storage market comes back.
If your company has a data center, chances are you own ADPT’s equipment and software. According to their website (www.adaptec.com), ADPT…
“has been a worldwide supplier of technologies and applications supported by major storage and system OEMs, system integrators, system builders, and value-added resellers that deliver enabling technology and products to address many of the most critical applications in data storage”
It is clear what they do as a company….they spend millions a Q on R&D to stay ahead of its competitors. But, ADPT the stock remains a mystery. In fact, they are factions in their institutional ownership that are trying to mount a coup based upon their belief that they have the proper leadership to make this company an attractive stock again. Here is the latest PR that will give you a clearer understanding of what is going on at ADPT. It appears that the action from an activist shareholder (largest single owner, by the way) will fail. Where will that leave ADPT?
Clearly the pressure is on the current Board and management to create some kind of lift in the stock. How quickly that can be accomplished is anyone’s guess. What I do know is that ADPT is going NOWHERE right now. I mean from a finanical strength standpoint. They will have time to create the plan that can make ADPT a stock that matters…the question remains, “Can they?”
Here is the chart: (it has been climbing incrementally, but nothing to get too excited about)
If I was to put on my rose-colored glasses and look at this chart, I could say the following:
- The stock is in accumulation
- The MACD is above the zero line and appears to be turning bullish
- The most recent run up hasn’t been volume or hype driven. It has been a slow and steady accumulation.
What I don’t see are “hockey sticks”. I will be interested to see what ADPT can do over the next weeks and months to get traders to pay attention again.
