I am confused. How is this good news for Bay shareholders? I interpret this data to mean that Bay lost share in a stronger than expected market. The Jan-March qtr results are in for Bay, and they were awful. The rationale was long and reasonable, but it revolved around market issues(eg. seasonal weakness, technology transitions, etc.), not company-specific failings. The research report that the A.G. Edwards' analyst refers to puts the lie to that theory. Even if these issues do exist, and I will grant they do to some extent, other competitors have been able to overcome them to a much better degree than Bay, YTD.
The question now is, has Bay done a better job this quarter in the competitive arena? The quarter is almost 2/3 over, and I still don't know how sales are doing. Some of the rest of you seem to want to hang your investment hat on the buyout scenario; I still want to know if my horse is a thoroughbred or a nag. I don't want to beat a dead horse here(boy, I'm clever), but I suspect potential suitors also are not interested in BUYING a dead horse either. Forget longterm promises now; Bay must deliver good numbers in mid-July or it will not remain an independent company. It will be too many promises made and too many broken. I for one hope this does not happen. It would not be in the best interests of the shareholders or company, but it is the likely scenario. The Alpha Wolves of the telecom world would smell blood and have no reason to offer concessions; only unconditional surrender will do.
A long weekend, and I am tired. We have Monday to ponder and then back to the real world. As always, reality will replace our individual ramblings and prognostications. I assume one of us will turn out to be right. After all, even a blind squirrel finds an acorn now and again!
Paul |
