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Technology Stocks : Bay Networks (BAY)

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To: John Messbauer who wrote (3124)2/27/1997 1:01:00 AM
From: Timothy Tashjian   of 4270
 
John,if you are short BAY I would cover I don't think there is much to gain shorting a stock that is at 19,p.e.of 20,p/book of 3.5. It is the cheapest networking stock and has new management which has a direct connection to INTC. House was second to Grove so if I were you I would cover the short.I don't know why people short what they do,I would only short stocks I thought were going out of business,had no cash and had no products that anyone would want. BAY still has about half a billion dollars worth of cash. Not a good short candidate. Also never short stocks where the short interest is over 10 days. Tim
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