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

To: rupert1 who wrote (4171)	2/11/1998 10:24:00 AM
From: WBendus	Read Replies (1) \| Respond to of 6980

I ran across a positive story yesterday coming out of DLJ, our favorite analysts, regarding the recent analyst meeting that Bay held. Their spin on it was that Bay like sold between 300 and 500 Accelar switches in December and that this likely dwindled down supplies of important components. They, therefore, feel that Bay will not likely make its estimates of shipping 2000 units this quarter because the analyst does not think they will be able to ramp production up quickly enough. And if the company can't ramp up sufficiently, the cannibalization of routers may not be offset this quarter. DLJ thinks the company will only be able to get 1500 out the door during the quarter. I say this is a positive piece because Dr. House has indicated that he is comfortable with the 2000 unit figure that the company has guided analysts to. Dr. House knows better than to let the expectations for the company to get out of hand, especially when the company is banking on having new products (those introduced within 12 mos.) account for the majority of the company's sales during the quarter. When Bay announces that they have filled this goal of 2000 units by March end, more analysts will realize that Bay is for real. I am looking for a move to $36 to $38 by quarter end and then a move to the lower $40's shortly after earnings are announced. Wayde.