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

To: Jay Mowery who wrote (35642)	1/24/2000 3:49:00 PM
From: Bruce L	Read Replies (2) \| Respond to of 36349

I think PAIR's performance today is awesome: up still 9/16 at 14 1/16 on the 4th largest decline in the market ever. It would have been nice if it could have held more of its gains, but it's still impressive.

To: Jay Mowery who wrote (35642)	1/24/2000 9:26:00 PM
From: Larry J.	Read Replies (2) \| Respond to of 36349

If you look at the daily chart, it looks like PAIR's end of day swoon is tied more to a research bulletin released by Charles W. Pluckhahn of Stephens Inc., than the collapse of the market. The report hit @ 3:09 P.M. PAIR had held $14 3/8 like a rock until that point. Basically, he shits on PAIR reiterating a "NEUTRAL" while touting ADTN "BUY" @ ~ $68. It's enough to make me want to puke!!! You have to wonder if some of these analysts are on the take. To quote: "Our rating on PairGain shares remains NEUTRAL (defined as less than 10% 1 year price appreciation potential). We note, however, that PairGain will be more inclined to move upward on advances in Globespan shares, which have recently soared. We believe the company faces fundamental challenges across its business lines. We do not believe today's transaction will affect the underlying issues faced by the company, other than to reduce PairGain's losses that were inflated by costs within the division. Specifically, we don't think sales of PairGain's Avidia multiservice access concentrator will be affected by the shift in ownership of the chip unit, Nor, in our view, will the deal have a positive impact on PairGain's position in the HDSL market, where the company has suffered serious competitive setbacks at the hands of ADTRAN, Inc." The report goes on to discuss implications for Globespan and then continues with: "Also, we expect PairGain to shift its allegiance to Globespan from the LevelOne division of Intel Corp. for sourcing of the next generation of HDSL chips, known by the name of HDSL2. We think the impact on both PairGain and Globespan will be neutral, at best, in this market space. The competitor to beat is ADTRAN, Inc. which recently demonstrated interoperability and standards-compliance between its HDSL2 chips and those from Globespan. The result, in our view, will be a validation of ADTRAN within Regional Bell telephone companies that had been pressuring the company, at the behest of PairGain, for "standards compliance." The interoperability demonstration has, in our judgement, affectively neutralized this issue and should clear the way for further advances for ADTRAN." If you ask me, this idiot sounds like he hasn't done his homework, doesn't understand the transition or true potential of selling systems vs. plugs ala Avidia, the fact that PAIR practically wrote the book on interoperability and standards, and that they may in fact already be winning HDSL2 business back from his beloved ADTN in major accounts (BA). Interestingly, however, his 12 month price target for PAIR is "NA", but EPS growth goes from (.02) in '99 to .16 in '00. Not bad growth for a company who share price won't gain over 10% this year! My greatest dissapointment is that PAIR will likely do little or nothing to start beating its own drum. An aggressive and timely rebuttal against this type of crap guising as "research" should be forthcoming from management or through other analysts that PAIR finds friendly (Kaufman Bros, Dain, Cowen, etc.). Larry