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

To: gs who wrote (3600)	1/21/1998 9:24:00 AM
From: Pierre Aydin	Read Replies (2) \| Respond to of 6980

They all have a hidden agenda, it's all BS, they just want to buy or sell for their clients or they are holding CSCO. I was very impressed with their CC and I think this company will grow like the other top networking companies(LU, CSCO, ASND etc.). They seem to lack WS respect but who gives a shit, I am a long term investor in BAY and CSCO so I really don't care about these idiot analyts' opinions from qtr. to qtr. I guess the phrase 'Long Term' is not in their dictionary. Pierre

To: gs who wrote (3600)	1/21/1998 9:40:00 AM
From: WBendus	Read Replies (3) \| Respond to of 6980

The conference call was interesting and I have a few takes on it. Generally the call was fairly upbeat but missing from it were the accolades from the analysts participating in the call. Typically when a company reports earnings that are at least impressive, the analysts are full of "great quarter", "I would like to commend you on an exceptional quarter and turnaround", I do not believe that I heard any of this. The other thing which I do not think boded to well, was their handling of the Book-to-Bill question from the DLJ analyst. If we can all remember, DLJ was singly responsible for thwarting the attempted rally which was taking us decisively over $30. DLJ's comments took the stock from $30 to $22 1/2 and it is my opinion that the company should have taken his question seriously and not ridiculed his question with laughter. Granted the question was a bit foolish to ask and the analyst should have known that the product line specific Book-to-Bill information was not something that the management was going to part with. There is still the overwhelming concern about the company not releasing geographic breakdowns of revenues and earnings. This makes forecasting tough and could hamper analysts from sticking their necks out on recomending this stock. As far as I know, geographic breakdowns of revenues are fairly common place in the technology sector. The massive share dilution which is going to take place and managements blunder in being able to handle this question effective will certainly cast another seed of doubt for SHARE HOLDER RETURNS. I have no problem making employees owners in the company because of the increased productivity and pride-in-ownership that it provides, but lets not "give the growth away". Use stock buybacks to fund ESOPs rather than diluting our ownership. I also got the sense that the company was dodging the tough questions and you will have to forgive me for not citing examples because I was listening to this call at 12:00AM. I was impressed with the financial performance during the quarter and noted a number of positives. But, unfortunatley given he current environment for stocks, investors are hunting for the negatives. I suspect the stock will trade slightly lower, as all of the .28 cents was priced into the stock. The biggest issue, I think, is going to be the increased dillution from ESOPs. Still bullish medium and longer term. Wayde.