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Technology Stocks : FORE Inc.

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To: CJ who wrote (8592)5/13/1998 10:34:00 AM
From: General Crude  Read Replies (1) of 12559
 
Bay Takeover Rumors

Sagawa added that at the meeting, Bay Chief Executive Officer David House said he felt that "the multiple assigned to his
company in the marketplace is ridiculously low."

"So I suspect that they would not consider anything less than, say, five times sales at the outside, which would put them in the
$50 (per share) range," the analyst said.

Sagawa quoted House as saying that he "expects his company to be valued at, not the same multiple of a Cisco (Systems Inc.
<CSCO.O>), but certainly within shouting distance."

"Cisco is valued at over 10 times sales and Bay is valued at 2.4 times sales," Sagawa said.

Any comments as to what Bay and Fore are worth to an acquirer (sales multiple). Per SI charts FORE is selling at 4.4 times sales.

Good Luck,

Doug
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