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Technology Stocks : FORE Inc. -- Ignore unavailable to you. Want to Upgrade?

To: David O'Berry who wrote (7364)	2/11/1998 12:08:00 AM
From: Pam	Respond to of 12559

David: As far as I know, these OEM agreements between vendors are pretty standard and I do not think if these two companies were talking, compensation of reps would come into the picture. I keep hearing that Fore is very difficult to work with without much proof of it. CS sells Fore's boxes and so did NT and there are/were no problems. NT decided to fill the gap in their productline themselves and they cordially ended the relationship. Fore OEMs IBM's TokenRing Switch. If Bay is looking for switches for the enterprise market the only choices are- CSCO, COMS, CS, MADGF and OLCMF. For obvious reasons the first two are out, CS sells Fore's boxes, MADGF is cash strapped and future development of products is questionable and OLCMF is a buddy of CSCO. NN and GDC and CSCC (ASND) have boxes for the carrier market and not the enterprise. NN had UB which is dismantled and they now are hooked-up with COMS, so the only company that makes sense to me is FORE because it is not aligned with anyone. How would CS react to this, I don't know. My take on Fore is I am going with the fundamentals. The company can make 60c (12+14+16+18) in the next 4Q's and I can give them a multiple of 30-35 on forward estimates based on their dominant and improving position in the enterprise market which gives a stock price of 18-21. We have been patient and I am sure we will be rewarded in due course. I think the momentum is there and NASDAQ may try to get to new highs and any positive announcements will push the stock in low 20's. Pam