Thursday, September 21, 2006


Position Updates: ADBE

Apparently, Cody Willard, hedge fund manager and blogger for The, is buying ADBE too.

Here is a snippet of what he said:

More to the point, Adobe's other product lines, which account for the majority of its revenue, are positioned for both secular and cyclical growth in the coming years. That growth is likely to take this stock to much higher levels. Here's the story.

Adobe will be rolling out the new version of Acrobat in the next few weeks. The company recently reported a strong quarter and gave big guidance, largely because this Acrobat upgrade cycle is about to hit. That's already pretty much discounted in the stock's recent rally.

But what's not discounted in the current quote of about $37 is that the company will be rolling out a new Creative Solutions package (CS3), which includes upgrades to Photoshop, Illustrator and other programs, in early 2007.

Finally, it's all about the future of advertising and video on the Internet. Macromedia's assorted versions of Flash have become a de facto standard for media-rich interactive advertisements on the Net. And despite Yahoo!'s recent stumblings and the possibility that advertising growth on the Net will slow for a spell, there's no arguing that Net advertising is in the early stages of secular growth inside the cyclical advertising industry. Same thing with Net video -- heard about the growth of YouTube? I want to own the de facto standard that these applications are being built on. That's Adobe.

SIRF weakness attributed to chatter suggesting GRMN is switching from SIRF to BRCM chips. just a rumor
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