Generally speaking, when I am looking for value propositions I am talking about P/E ratios under 10 and higher-than-average dividend yields, but that is not the case for this "value stock." The P/E is about 24 and it does not pay any dividend, so where is the value? For starters, the P/E may be high, but it is not historically high for this company and Adobe is about 13% off its 52-week high.

As you can see from the five-year chart, like most stocks, Adobe zigs and zags, but the long-term trend is up and many analysts think that trend will continue.

Barron's (subscription required) has done several positive stories on Adobe, and continues to see it as a $50+ stock. They thought it would be last year, think it should be now and cannot imagine why it would not be in 12 months. Yesterday, ADBE closed at $39.46, another 10% less than it would have been had it made my initial list.

Adobe released new software last year, Creative Suite 3, encompassing its complete line of products in a package that is slowly being adopted by numerous industries, including entertainment, advertising, graphic design, product design, marketing, you name it.

I have reviewed the most recent reports by Standard & Poor's and Reuters, both of which are favorable and I agree with most of their sentiments. This is the stock I am going to make my first new pick of the year outside the basic 8 for 2008, based on quality of product, its even lower stock price, historical P/E, management, and almost monopolistic market share. It is the first tech stock I have suggested in a long time, and at today's closing price of $39.25, I think it is a bargain.

Disclosure: I do not own any ADBE shares as of this date.

To find potential opportunities and verify my track record read Chasing Value or Serious Money.

Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture & planning firm.