Investing in Avid Stock? would you?

[garnoil]

I am not a financial expert, but I looked at the Avid investor's report, in the Avid Website. The stock right now is around 12 dollars but in the year 2005 the stock was at about 55 dollars. According to the investor's calculator, this means an 80% loss of the value of the stock, I think this also means, the company has lost 80% of its value. In fact, if one uses the investor's calculator based on a 1000 dollar investment, every single year since 2000, (except for one year), the investor would have lost at much as 60% of the value of his/her investment. Invest $1000 get back $400 and this is before commissions, If one factors in the rate of inflation and other normal cost of living increases, it appears that investing in Avid is a sure way to loose all your money incredibly fast. As a lay person with absolutely no financial insight into how stocks work, I would think that based on the company's past performance, Avid either post a significant profit soon, or it will go bankrupt. So...with the stock hovering at about 12 dollars, how much lower should the stock go, before any one comes up and gobbles up cheap stock "buy cheap sale high"?

http://ir.avid.com/stockquote.cfm

[M-ManLA]

I wish I had the money to by some shares right now.

[promixr]

not sure where you've been but the entire stock market has seriously tanked since 2008... AVID's current market share could simply reflect the general state of the economy in North America right now... so I wouldn't read too much into it...

[GeneOuse]

Looking at Adobe stock - they seem to be doing really good for today's economy. They're not entirely in the same market as Avid to be fair but we all know that Avid's downfall has a lot to do with their business strategies.

[M2E]

Their stock has not been this low since 2001. It keeps dropping too. I'm not sure if the employees are looking at their companies stock but, somebody better start thinking on how to turn this company on an up swing and quick. Not a good sign when there is a bad economy and your stocks are going down for no reason.
Would I buy? Not yet. Wait til after the release of the new product. Not sure about Avid but, when Apple releases a product, their stocks go down then they start to rise when good reports come in.
I'm sure it's the same with Avid.

Marc

[garnoil]

Originally Posted by promixr

not sure where you've been but the entire stock market has seriously tanked since 2008... AVID's current market share could simply reflect the general state of the economy in North America right now... so I wouldn't read too much into it...

Investors "read a lot into the financial reporting of a publicly traded company", in fact, it is the most important things that investors look at. What else is there to accurate financial information to evaluate if a company is a good investment or not? the words of the company's CEO's open letter, or dealers hyping the product, or the company's marketing and pr machine? NO. It is the financial reporting that matters and while there may be other mitigating factors to be considered in the company's performance, the financial statements ARE the story of the company. Investors that "don't read a lot into the financial state of a company" deserve to loose all their money.

[tcbetka]

I'm by no means an expert in the stock market...or in Pro Tools, for that matter. But I think that (besides the poor economy), you can explain some of the stock value decline with improvements in the DAW technology. The way I understand the "industry," Pro Tools was pretty much THE app to have for quite a few years. This is was especially true in the PT HD world. But over the past 5-7 years, it seems that some of the other DAW applications are making headway in terms of performance. And I think one of the main reason for this, the advancement of computer processor/hardware technology. I've had more than a couple experienced Pro Tools users in Nashville tell me that they now work with Pro Tools LE much more than HD, because the computers they are using have the processing power to handle it.

So I while I am not trying to say that there is no longer a need for PT HD systems, I do think that the significant improvements seen in the capabilities of computer hardware in recent years has narrowed the gap between Pro Tools and the rest of the DAW industry. And with the surge in the popularity of home-recording, I can understand why Pro Tools maybe doesn't have the market share it used to. Hence their stock value has gone down.

The big question, is will the trend continue?

TB

[RussUK]

The high this year was $17.99 it's now at $11.70 after the announcement of what is regarded by Avid as fantastic new product for audio and the huge update of Avid Media Composer to version 5.0

So it's a pretty low ebb right now after the release of some serious products which have required a lot of R&D investment.

Avid started to trade in March 1993 at $25.00 and hit an all time high of $66.90 in Feb 2005 and an all time low of $7.29 in Sept 2001 (remember what happened then!) so that bit is expected.

In the grand scheme of it's trading history it's at a low, despite the reduction in losses and stuff that should have pushed it back up.

For comparison here are a couple of other stock listings:
Apple: Started trading in Sept 1984 at $3.31, high (now) $260.09.

Adobe: Started trading in September 1986 at $0.19, high $38.81 and now $27.92.

[Hotcrazyfruit]

I couldent invest if i tried. but if i could, i would probably get in around now. a) were nearing the end of this recession, and b) they've got some new products coming out soon. Which means profits for them. and shares go up... at least youd hope....

Nick

[M-ManLA]

Originally Posted by Hotcrazyfruit

I couldent invest if i tried. but if i could, i would probably get in around now. a) were nearing the end of this recession, and b) they've got some new products coming out soon. Which means profits for them. and shares go up... at least youd hope....

Nick

That is what I am saying. I would buy a few since they are on the cheap.