Adobe Systems, Inc. (ADBE)

TheStockoholic (< 20) Submitted: 3/19/08 12:26 AM : Start Price: $33.78 ADBE Score: 30.78

Investors holding Adobe stock for the long term are in an excellent position to make money. Adobe announced better than expected revenues and earnings. First quarter revenue came in at $890 million, up 37 percent from the year ago quarter. Adobe posted a net profit of $219.4 million, or 39 cents per diluted share, in its fiscal first-quarter, up from a profit of $143.9 million, or 24 cents per diluted share, in the year-ago quarter. Sales rose 37 percent to $890.4 million in the quarter from $649.4 million.
What does Adobe do? They offer business and mobile software services. In other words, they're 95% tech, and 5% media. The company provides the players and software to edit and distribute online video. And it appears that their products, the Creative Suite 3 and Acrobat products are in high demand. And if that's not enough to convince you, worry not. Adobe has more products in the pipeline. Next month, they will be releasing a new media player which will transform the way we watch online videos on our computers. It will allow you to download internet content onto your desktop so that you can watch it without actually being online. Plus it's open source and works across all platforms. Sounds like a winner.
Looking at the numbers:According to Yahoo! Finance, P/E is 26.37, profit margin is 22.39%, ROE is 14.77%. No debt, $1.99 Billion in cash.

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