Friday, December 14, 2007

Adobe stock has done well the last few years

If you know anything about the multimedia, graphics and publishing industries than you know what Adobe is. Adobe Sysyems inc. (ADBE) is a leading desktop publishing provider. It is responsible for the Acrobat reader which is distributed free of charge throughout the internet. It displays PDF files (Portable document files). The company also produces Photoshop, Illustrator and pagemaker. They also offer professional web design (Go Live) and electronic book publishing.
In January of 2003 one share of Adobe was going for about $15. One year later it was at $20. By january of 05 it hit $32 a share. By the beginning of 06 it was at $42. In the summer of 06 it hit the skids and dropped down to about $26 a share. It spent the rest of that year in recovery mode and by the end of 06 it was back at $42 a share. Less than 2 months ago it was flirting with the possibility of hitting $50 a share but it did not make it. On December 13th it closed at $43.90 so it is toying with the idea of not having done much this year but who knows the year is not over just yet. From $15 in the beginning of 03 to almost $44 now represents almost a 300% increase in the value of the stock. There is some risk here because it has had some drops so if your in it for the short term i would say no. Over the long term this should continue to do well but expect a temporary setback from time to time.

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