Top 1%
A great company with an excellant future
Started Apr 28 at 8:37 ET (By guliamo)
I've recently added ADBE to my portfolio and wanted to share my rational:
Adobe is one of my favorite companies and for three big reasons: PDF, Flash and Photoshop.
These guys ARE the market in everything that's internet documents and multimedia.
Revs have grown 37% since last year and earnings followed suite with 50% growth in earnings.
there are analysts here and there who have downgraded adobe in the past years for all kinds of reasons - but lets not get too excited, dumb analysts aren't that hard to find.. where is that Moron from Oppenheimer that said Google was about to collapse?.. hehe.. but in all seriousness.. these days Adobe seems like a great "Buy" and hopefully will stay that way for a long time.
Great management, great prospects. Love it.
One more thing: The state of New York has announced it will aim to go paperless for tax returns.. just imagine how much Adobe will be making on PDF licenses once the IRS starts accepting tax returns in that format... aouch!
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Top 2%
Lowrance
Apr 28 at 11:39 ET
Yeah, been watching ADBE but was waiting for it to hit $30 again to pick some up... but the way it's been performing, looks like it won't happen for a long time if ever again.
Top 1%
guliamo
Apr 28 at 5:01 ET
You mean it won't be back down at 30, i hope..
I've read your philosophy about short term investing.. It's a very interesting concept that I have been thinking of myself. by anticipating a trend, there is money to be made.. but it also means a change of lifestyle as far as being constantly in tune with the market. Not sure Adobe is right for this kind of play though.. I'm thinking about this baby long term.
Top 2%
ITGURU
May 13 at 7:11 ET
Not sure if you are aware, but office 2007 has a free plugin from Microsoft for creating pdf docs from within the office suite. This eliminates the need to purchase Acrobat writer and the reader is already free from Adobe.
http://www.microsoft.com/downloads/details.aspx?FamilyId=4D951911-3E7E-4AE6-B059-A2E79ED87041&displaylang=en
Not that PDF is the full value of this company, they have lots of great products. I just wouldnt factor in Acrobat to high in your valuations.
Top 1%
guliamo
May 14 at 1:41 ET
Thanks, ITGURU. I have to say I don't know too much about Adobe's actual licensing deals but I'm sure there is a strategy behind allowing free PDF writing. I think Adobe is cool when it's done by a single user but charges a licensing fee from companies. otherwise, what's the point?
Top 2%
arawak
May 14 at 5:28 ET
I know there are a number of free PDF creation utilities out there. Heck, even OpenOffice comes with a "save to pdf" function.
Adobe is a great company but, like goog and aapl, that doesn't make them a good investment. A PE of 30 is so-so and I think a reason why it hasn't moved beyond its 2006 peak.
In sum - I view adbe as a company that has already "won" its market which thereby limits its upside potential. My personal investment philosophy is to buy losers (AMD, ETFC) that have maxed their downside potential. :)
Top 1%
guliamo
May 14 at 5:36 ET
Do you feel ADBE has milked it's potential? What about Flash? seems that every one is moving to flash video.. is there revenue in that for Adobe?