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Technology Stocks : BAY Ntwks (under House) -- Ignore unavailable to you. Want to Upgrade?

To: Liatris Spicata who wrote (3523)	1/16/1998 7:59:00 PM
From: rupert1	Read Replies (1) \| Respond to of 6980

Larry: As you know Intel, among others, such as Compaq and Lucent, has been making a lot of noise about a strategic moves into the networking market. I know the standard response to this is that none of them understand the market or have sufficient stake in it to affect CSCO, BAY or COMS. But the relatively unsophisticated comprehension of networking which is characteristic of the investment community and the general investing public is fertile ground for the suggestion that strategic moves by these companies will be effective. Earlier this year we saw the effect on COMS share price of Intel's competition in their field. COMS came out of it ahead, but at the cost of reduced margins and residual nervousness about Intel's next move. My post about Intel's announcement today was to suggest one possible cause of BAY's relatively poor performance today. I note that COMS and CSCO also gave ground after the Intel announcement. Given the low volume for BAY and CSCO (but not for COMS) it would not have taken much selling to depress the price today. Having said all this, I agree with Paul Fine, that the most probable cause of today's slight pullback was the conservatism of those not wishing to hold positions over the long weekend. I was tempted to sell some of my holding for the same reason. I agree with Paul that people are nervous - I am. But it is one of those occasions when logical analyis should prevail over emotion. I believe that BAY's surprise will be noteworthy - more than 2 cents. I think the market will react positively. Vepoc