This was found on the BAY thread...
Data Networking - Our Top Picks For January Effect Rebound
Subject: Industry Update
Analyst: Noel Lindsay, (415) 217-4227
Associate: Erik Suppiger, (415) 217-4228
Industry: Data Networking
Date: December 29, 1997
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* 3Com Corporation: Stock price dropped from $75 to $27 in early 1997, and
again from $56 to $30 in Oct. & Nov. We continue to think 3Com is
positioned second only to Cisco - trading at nearly half the multiple.
* FORE Systems: Stock price dropped from $35 to $15 in 1997, causing
heavy tax loss selling, yet we expect strong Dec. qtr to be reported.
* Bay Networks: Dramatic turnaround made BAY a momentum stock, driving
it from $16 to $41. When expectations caught-up with reality, momentum
players sold and tax-loss selling followed, knocking it from $41 to $23.
* Cabletron Systems: Deteriorating fundamentals caused stock price to
fall from $45 to $14. Tax loss selling appears to be preventing a
rebound, but this could change in Jan. Despite tough challenges, we
think its attractiveness as an acquisition limits downside risk.
Happy New Year to all,
Rob |
