Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Cruiser who wrote (3664)	1/21/1998 1:56:00 PM
From: rupert1	Respond to of 6980

I suggest that everyone separate the action of the share price from what analysts have said. No analyst has said that the share price at close yesterday was too high. Those that have downgraded seem to be saying that the price is just about right but it will not get significantly better soon - or at least they would not want to bet that it would get better until they see the third quarter results. This is disappointing to those of us who think that BAY's prospects are already clear enough, but it is not damming. The fall in the share price is because some people were relying on analysts and the market to carry the price higher immediately in anticipation of future earnings. Some such people have judged today that they would prefer to put their money elsewhere until the upward momentum is established. Others sell because they are afraid of the downdraft. None of this alters the fundamentals. A price of $26 or $27 offers short-term traders a short hop back to the $28-$29 range. Of course it also offers the possibility of a dip to $25. Not all analysts have reported. There may be some more upgrades or reiterations of existing buys. I agree that the DLJ guy is involved in self-justification. He is also setting himself up to upgrade as soon as he can. Vepoc

To: Cruiser who wrote (3664)	1/21/1998 2:53:00 PM
From: gs	Read Replies (1) \| Respond to of 6980

Bay Networks Dn 9% On Questions Over March-Quarter Outlook Dow Jones Newswires No further information is available at this time. No further information is available at this time. By Joelle Tessler NEW YORK (Dow Jones)--Bay Networks Inc. (BAY) shares slipped 11% Wednesday a day after the company warned analysts that results for its March quarter tend to impacted by seasonality and that revenue for the period could be sequentially up or down. A number of analysts had lifted their ratings on Bay Networks early Wednesday after the networking equipment maker beat consensus earnings expectations for the second quarter ended last month, after the market closed Tuesday. But, the company's forward-looking comments prompted other analysts to cut their ratings and take a more cautious stance on the near-term outlook for Bay Networks. Sources said Bay Networks indicated to analysts late Tuesday that revenue has been sequentially down in the March quarter over the past few years and that it would like to break this trend this year. " I had never even considered that it could be sequentially down," said Deutsche Morgan Grenfell analyst Noel Lindsay, who earlier cut his rating on the stock to accumulate from buy. "This is incrementally less optimistic." Bay Networks late Tuesday posted operating earnings of 27 cents a diluted share for its fiscal second quarter, above the 10 cents a share in operating earnings that the company reported for the year-ago period. Bay Networks, which has been in a turn around under new management for the past year, also beat Wall Street consensus estimate of 26 cents a share. The company's NYSE-listed shares were recently down 3 1/4, or 11%, at 26 3/16 on volume of 4,480,100 shares compared with an average daily volume of 3,225,800. Company officials declined to comment on the stock movement Wednesday.

To: Cruiser who wrote (3664)	1/21/1998 3:24:00 PM
From: frank burch	Read Replies (3) \| Respond to of 6980

Cruiser- you obv. didn't listen to the conference call. It really doesn't pay to mock and laugh at some of the most powerful analysts on the street. Not only is it rude, it shows what a bunch of IR amateurs these guys are. They are good managers, but they stink at communicating to analysts. The problem is how they characterized btb. The reason btb was under 1 was that BAY instructed the sales force to not take orders in Dec. for any product (accelar) that they couldn't have on hand on Dec. 31. Hey this is alright. BUT THEN CLEARLY EXPLAIN THAT TO THE STREET.

To: Cruiser who wrote (3664)	1/21/1998 5:57:00 PM
From: WBendus	Respond to of 6980

Cruiser, You said: "Bay's management job is to manage the long-term and short-term business for the company and make us the number one premier networking supplier for the world... this is what they are doing." Actully, as the first axiom in finance says, managements job is to "Maximize the value of the company", or in other words, increas the price of the stock. While positioning the company to be the "one premier networking supplier for the world" might seem like a prudent goal, it is not necessarily the goal that maximizes the wealth of the share holders. Although in the end I believe being the number one supplier may be our best bet, I just want to clarify to you what managements role is. Wayde.

To: Cruiser who wrote (3664)	1/21/1998 6:50:00 PM
From: G. Richmond	Read Replies (1) \| Respond to of 6980

Cruiser/Lerxst, Congrat's on another successful quarter. 2 positive things that were overlooked today amidst all the analyst BS were: 1. Bay has passed 3COM in the system business to become the #2 network player. 3COM dropped from $714M to $620M while Bay grew from $601M to $645M. 2. Straight from the Intel business school, as the competition, Cisco, announces a product to compete with the market leading 350T, Bay roll's out a better, less expensive upgrade 350T-HD to obsolete Cisco's yet to ship version. Well done. So kudo's to all at Bay. GR