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Technology Stocks : BAY Ntwks (under House)
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To: rupert1 who wrote (3347)1/3/1998 1:30:00 AM
From: WBendus  Read Replies (1) of 6980
 
Vepoc,
In an earlier post I had indicated that I thought Bay had significant support in the $22 1/2 range and should be poised to make a run up to 27 1/2 prior to earnings. Solid earnings at or above the estimates of .26 or .27, depending on who you listen to, should allow the stock to break through the 27 1/2 resistance level created by the gap down from the DLJ comments.

Volume is a little on the light side but all-in-all I think that the technical picture for BAY looks fine. I think that Bays small exposure to Asia and recent contract win in Austrailia should allow it to shine above the other networkers during the first half of the year. Management has indicated that sales and recievables were tracking fine through the quarter and that they were comfortable with analyst estimates of .27 cents for the quarter.

Bay is in an excelent position at this point, it has a number of things going in its favor. 1) Asian exposure is small, 2) Europe business is strong and shour offset Asian impact, 3) Bay is a prime candidate for a January effect, 4) Accelar product sales are going strong 5) growing market share. The only concern that I see is the slowdown of router sales because of canabilization by the Accelar gigabit switches. We are allready expecting this and I do not expect much of a surprise if the company announces that routers were only slightly up or just flat for the quarter.

Rest easy my friend, Bay is a good stock to own at these levels.

Wayde.
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