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

To: missing who wrote (4351)	2/28/1998 6:24:00 PM
From: Ling Chen	Respond to of 6980

Hmmm? Lets see. A very strong qrtr? The trailing EPS' have been around avg of .24. A "very strong qrtr" (with the Asia the situation ) would be .26. This results in a 4 qrtr earning of .95 per share. At 60 /share, that is a P/E of 63. Wow. PE of 63 for a company that has struggled with earning growth for exactly 2 years is pretty high. I think your are being optimistic. I bought BAY because it was way undervalued. Holding on to Bay for new highs is a dangerous game. IMHO! Stock price all depends on the next 2 quarterly reports. I think revenue growth is more important than income at this point. If Jun quarter Bay's quarterly revenue exceed $800 million even if earning is only 30 - 35 cents/share. This stock still could break all time high. We never know. All number that you provided is projected number. Bay could deliver much better than those projected number if their marketing and sales strategy is successful. Those analysts who made estimates are not god. That's why they frequently come out "ups" or "lows" estimate number. What kind of number did those analysts project for ASND EPS of 1998 and 1999 when it's stock at around $80. real number is more important than projected number. Bay's switch with build-in router function is an excellent product. Right now the major task is to let all people know it's better than CSCO's traditional router in a short period time. that's why right now the most important is marketing and sales. House got a very good marketing and sales people from Intel, who invented "Intel Inside" concept. Let's see what Bay will perform in the next 2 quarters.