Acting on panic never helps investors, but it's still a good idea to play devil's advocate with investments.
Consider software developer Adobe Systems
Here at the Motley Fool, we like to consider both the good and bad sides of an investment, so in this article, so I'm highlighting three of the main bearish arguments on Adobe today. Be sure to read the bullish side as well, and then weigh in with your own comments below or rate Adobe in CAPS.
1. HTML5 is a credible threat
With the emerging HTML5 standard's ability to do much of what Flash does without third-party applications, some CAPS members see a major threat to Adobe's prized media platform. One RBC Capital analyst calls it an overhang that can't be ignored. With Apple
2. Security flaws
Expectations have been high for Adobe, which now sits at a trailing multiple of nearly 47 times earnings. Its CAPS rating has fallen from five stars to three in fairly short order this year, as CAPS members increasingly think that Adobe's shares may be getting ahead of themselves. With cheaper alternatives out there, some investors are passing up a solid software company simply based upon price.
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Fool contributor Dave Mock has found three more reasons to turn down those tempting telemarketer offers. He owns no shares of companies mentioned here. Microsoft and Nokia are Inside Value picks. Google is a Rule Breakers recommendation. Apple and Adobe are Stock Advisor picks. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool's disclosure policy used to wear a hairpiece but is finally comfortable enough with itself to go au natural.