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Technology Stocks : Bay Networks (BAY)

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To: whitephosphorus who wrote (3098)2/26/1997 7:31:00 PM
From: John Messbauer   of 4270
 
William, my opinion is a loss will do a lot of damage to the stock price as well as investor confidence. It could take 12-18 months for BAY to regain the confidence of the street and that would be with steady improvement in EPS,Rev's and new products that work and delivered on time. As far as the "big dog" in Boston I assume you mean Fidelity. That's hard to tell. It may be a function of their buy price, willingness to hold and their perception of the future. If funds bale out, the downside could be big. My guess on the down side would be a single digit price. I sure hope that dosen't happen!!! My thought is they will average down if think the future has promise because funds generally are planning to hold for a 18-36 months.

Regards,
John
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