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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (34501)	11/5/1999 2:56:00 PM
From: max power	Read Replies (1) \| Respond to of 36349

BWAC, I also follow both companies and am kicking myself because I didn't dump pair for afci. The difference between the two companies? that's easy....management. Afci promotes itself and I have seen the ceo on various business programs describing their bright future. He is well respected by analyst. charlie pascoe hides out in the bunker in tustin...

To: BWAC who wrote (34501)	11/5/1999 8:17:00 PM
From: john p. carney	Read Replies (2) \| Respond to of 36349

Hate to say it but..... CS is about to EXPLODE. Dusted off my B Bands analysis. CS to mid 20s next week. I've been waaaaaay wrong before, people so take it with a large grain of salt, but I've been right a lot also....SEBL, BIGE, GEND (before they went bankrupt....hehehe) QNTM before they rocked. To Doug R. check out CS chart and let me know if you agree. John

To: BWAC who wrote (34501)	11/6/1999 1:15:00 PM
From: Larry J.	Read Replies (2) \| Respond to of 36349

Interesting comments from Soundview Financial (Chandon Sarkar)on 11/4: We spoke to management on the heels of some unexpected strength in the stock over the past couple of days. Our price target on PAIR remains $15. Despite some interesting customer prospects on the ADSL front as well as restructuring possibilities, we are unlikely to raise our target. (RATING: BUY, EPS F00 .04) Highlights: While acknowledging the periodic takeover rumors that continue to swirl around the stock, management, (like us) is otherwise at a loss to explain the recent strength in the equity. These rumors involve some combination of ADC, Rockwell, and Copper Mountain buying various pieces of the company. We do not believe that and immediate action on this front to be likely. However, consistent with our previous written commentary on PAIR, we still believe the company is likely to make some key strategic decisions by year-end regarding the best ways to maximize shareholder value. PAIR's Avidia DSLAM and legacy HDSL businesses, however, appear to be enjoying some synergy as their strong HDSL position gives them a differentiated offering on the Avidia product. Thus, it does not appear that the company is likely to separate these two business segments in any restructuring that is undertaken. However, a possible spin-out of the microelectronics business is still under consideration. While several of our peers continue to beat the drum that an MCI contract is imminent, we believe that the timing of such a press release remains difficult to predict. However, we do believe that PAIR has already practical purposes won business with this important customer and is similarly well positioned at Sprint. During the past six months, our EPS estimates for 2000 have gone from $0.60 to $0.04. During this period, the stock price has gone from $6 to $14, as investor focus turns to Avidia. This product combined with takeover/restructuring prospects holds most of the speculative appeal for investors while fundamentals remain somewhat shaky. *With respect to the December quarter, business thus far appears to be in line with expectations. Investment Conclusion: Our target remains $15 based on Avidia. Regardless of how strong takeover prospects may eventually arise, we are unlikely to raise this target because of continued uncertainty on the revenue and earnings front. END Of note here I see a few things that are extremely positive: Takeover rumors are a positive. I had not specifically been aware of such at any recent time, and had not heard the suitors named before, except perhaps ROK in the context of picking up the microelectronics business. Conversion to CMTN in particular would be sweet! Confirmation that management seems focused on unlocking shareholder value consistent with earlier statements by Pascoe. Year-end is mentioned as a target to roll-out some initiatives in this regard. MCI is again confirmed, but of surprise is the comment that PAIR is similarly positioned at Sprint as others have confirmed that LU's "Stinger" is the primary DSLAM. December quarter tracking to plan....I hope so, as his estimate is for a .06 loss! It seems to me that the HDSL2 business at BA, Peurto Rico Tel., and Focal of those we know about may offset loss of HDSL revenues. Perhaps a surprise is in the offing. I do find it laughable, however, that Mr. Sarkar has a BUY rating on the shares yet reiterates several times that he will not raise his $15 estimate in light of the fact that PAIR was at $14.31 when he wrote this. If a Soundview BUY rating is only worth a 4.8% return, I think I'd be looking for a new broker! Larry P.S. I agree with you re: AFCI (I recall passing on it at $4). I too was convinced that PAIR was a better play. FWIW, I think we'll see our $27 yet!