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

To: Andreas Helke who wrote (14)	11/23/1997 7:55:00 PM
From: Clam Clam	Read Replies (1) \| Respond to of 36

This stock has been all over the place this year. I am trying to time an entry point but this one is tricky. On the one hand, you have a very well-managed company with excellent relationships and new technology. On the other, you have irrational pricing behavior by some competitors and lumpy buying patterns from PAIR's customers (RBOC's). The current chatter is that Higain revenue growth (75% of total) is not accelerating and companies that depend on RBOC spending are not the place to be. PAIR will be a key supplier for access technology but how such spending develops seems surely to be a stop/start experience. Throw in the fact the company has max-ed out operating margins and the earnings growth looks meager for the next few quarters. The stock got killed earlier in the year but that was mostly due to analysts lowering estimates repeatedly. I think estimates are now makeable/beatable and PAIR appears to have bottomed this summer but might we re-test the 'teens?? A 20-25x multiple looks like a very reasonable price to pay for such a high-quality company so I guess that makes it a buy around $20, despite near-term EPS comparison trouble. What do you think??