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Adobe Bricks After CFO Resigns

As its stock price crumbles, the trader sees opportunity.
Author:

Most of my mornings are spent scanning for opportunity. I still read the big dailies -- on the Web, though -- looking for something I might have missed yesterday because I was involved in some other stocks.

What does that mean for this morning? I had a classic example of why it is still a good idea to look at the papers, because I simply can't grasp all of the juicy stuff that happens in a day. There on the biggest percentage decliners:

Adobe

(ADBE) - Get Report

. Down 18. Wow!

I know from the cryptic stories about the decline that there might be opportunity here. I will now take a long hard look at Adobe. I hadn't followed this stock in some time because I thought it had gotten away from us. We like

Macromedia

(MACR)

in this space. But I know Adobe is embedded into virtually everything I see on the Web, so that seems like an attractive opportunity.

The stories say that the stock lost 18 because its CFO resigned. That's a big red flag for me. I know I was worried when

Microsoft's

TST Recommends

(MSFT) - Get Report

CFO resigned, and I love that company. You have to be sure that something is not wrong or untoward when a CFO resigns, unless a new regime has come in and wants to put in fresh guys. A CFO is a very important person, often the conscience of the enterprise. Sometimes they leave because they won't put their stamp of approval on something that might be considered a stretch, accounting-wise. Too-eager recognition of revenues that might not occur, for instance.

I know of no reason why this guy resigned. But we will spend the morning trying to check it out. If it turns out nothing big is happening, I will go to our Adobe

board and let you know. That, right now, does seem like a huge buying opportunity.

Random musings:

And the winer of yesterday's manipulation contest was

NBT Bancorp

(NBTB) - Get Report

! It moved up 2 points at the close. Traded all day around 13 and change and got marked at 15 7/8. Total outrage!

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Microsoft and Macromedia. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.