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

To: Greg Thornton who wrote (35678)	1/26/2000 12:47:00 AM
From: Larry J.	Read Replies (3) \| Respond to of 36349

Greg, re: how Promatory equates to PAIR valuation, there was a highly detailed analyst report by Kaufman Bros. that came out on 1/07/00, immediately after the Nortel / Promatory acquisition that valued Pirgain on a relative basis with Promatory looking at the sum of the parts, leadership, established sales channel, and most importantly Avidia vs. Promatory's product. The net result being that PAIR would be conservatively valued at $23 per share in a sale (and I recall that the figure used for the sale of the ME business was closer to $150M). I don't feel like reposting the report but if you PM me a fax # will be happy to send it on. Larry

To: Greg Thornton who wrote (35678)	1/26/2000 10:51:00 AM
From: BWAC	Read Replies (1) \| Respond to of 36349

Greg, Best excuse??? I am an agitated dummy that had too many figures and mathematical thoughts floating around my head. The ME Unit sale should correctly be around $250 Million. The Promatory question has been answered. Book Value = Assets less Liabilities. Or another way Stockholders Equity. It is ONLY an accounting created estimate of the financial equity of a company. Some things that "may" skew Book Value down or too low: Investments carried on the books at Cost. Which have highly appreciated over time. Land and Property. Which have increased in value over time but are shown at cost and which may have even been amortized down. (Not land) Not included in book value are things like PAIR's dsl knowledge, expertise, and other sorts of intangible things.