<<I don't see another company buying PAIR because the prices of their products are going down.>>
Price cuts are across the board for every vendor (PAIR, FORE, LU, CSCO, etc.). With consolidation, PAIR will have to merger to survive. This is the same for COMS, Siemens, CSCO, etc. who must develop or acquire new technology to stay ahead of the curve. Right now, the industry is dawning on ADSL. Those who have it will be the front-runners when deployment increases in the coming months.
PAIR will be sold at fair market value. Right now, that is around mid to upper 20s. Factor in the fact they have over $200M in CASH, and that they continue to make money, the merger would become almost instantly accretive. In the M&A world, that is king when both company stock goes up on the agreement.
Right now, PAIR continues to be an investment, not a daytrading stock, unless one wants to catch the 1/4 point swings daily. |
