<<The street hates the merger. Here is what I believe is their collective perception: Nortel is a very low margin company and Bay will not be able to encroach upon Cisco's dominance in networking and thus the margin will remain as it is but the stock is now deluted because of the Bay merger. In short they do not see Bay as adding substantially to the bottom line and their traditional telcom business is losing to Lucent. What we have here I fear is just a bigger Bay Networks that is up against better companies and the street wants to bank on the leaders Cisco and Lucent. I am clueless as to what to do as an individual shareholder. I am now down around 5k.>>
George, my sympathies, but if all you're down is $5K, why spend so much time on this? Your time spent on this at $25 per hour must be approaching that? I think your perception is dead on: LU is walking away with the voice game, and BAY was never going to beat ASND in the data WAN, CSCO on the high end, or COMS in its specialties.
The question now is, "where's the best place for your money?" In this thing, with (IMO) lots of downside and sideways movement, or in a high growth stock that has its act together - the three networkers I like are CSCO, COMS, ASND, but I also like BMCS and EMC as high tech plays. LU will be attractive if they fall much further or if they buy someone and then crater.
Best of luck. |
