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Technology Stocks : Xylan

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To: E_K_S who wrote (3879)2/18/1999 10:40:00 PM
From: E_K_S  Read Replies (1) of 4135
 
Rumor on the street here in Silicon Valley....

"... Posted by ISAKSEN on Thu 18 Feb '99 (08:43 AM)

I can't say that I'm all that happy with
the short term performance of this
stock. It is fustrating to watch.
However, I also work through a longtime
very successful Morgan Stanly Dean Witter
broker who is 100% confident that the
company will be bought by the end of the
year by someone like IBM, Cisco, or
Lucent. The buyout price will likely be
$40 - Xylan turned down $30 last fall.
Funny I was thinking of buying more today
in the dip but kind of missed that
chance this morning, maybe I'll buy more
now anyway. Go Xylan!..."

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I continue to hold XYLAN based on PE, growth and fundamental valuation. If I were CSCO and needed to sustain a 30% growth rate, XYLAN would be a no brainer as a purchase. Why not buy your growth as far as it is accretive to earnings...Xylan is.

EKS
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