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Technology Stocks : DSC Communications -- Ignore unavailable to you. Want to Upgrade?

To: Moe Damghani who wrote (3772)	3/7/1998 12:49:00 PM
From: Timothy W Adams	Respond to of 4429

Good post, Moe. I know that in my business (electric distribution), when I've experienced product problems, my opinions of the supplier and his product have been shaped more by the way the problems are addressed than by the fact that problems have occurred. If DSC acknowledges responsibility for the problem and moves aggressively to correct it, their customers confidence in them as a supplier may actually increase. On another front, we are nearing the end of the quarter and mutual funds will be doing some window dressing in the coming weeks. DSC was highly regarded at the end of 1997 (Smart Money article, for example), but it looks like healthy profits may be a bit further out than anticipated. Perhaps this is the source of some of the selling pressure.

To: Moe Damghani who wrote (3772)	3/7/1998 12:50:00 PM
From: Yeadon	Respond to of 4429

I mentioned before that estimates for DSC are starting to come down. According to Zack's, the three most recent estimates for DSC for FY 1998 are approximately 1.14, 1.20, and 1.30. Remember a few months ago when they were in the mid-to-high $1.30s, on average? Expect more analysts to come down. Not sure how the market will react to CPQ's announcement, as their troubles already known, though it cannot help. Also, remember general disappointment, preannouncement time is coming up fast (for some already here, like for CPQ), and the market usually falters at this time, and it is unlikely DSC will hold the 17 low. I am looking to pick up more in the 14 to 15 range in the next couple of weeks, maybe sooner. Moe, your note of money managers bailing out is very likely. Vinik unlikely hanging around to see DSC go lower. Yeadon

To: Moe Damghani who wrote (3772)	3/7/1998 12:50:00 PM
From: feltburner	Read Replies (2) \| Respond to of 4429

re: rumors Sorry it took so long for me to respond. One analyst mentioned it as "people are starting to mention that CSCO might have an interest" but he was doubtful that anything would materialize even if true- that was early in the week. Around mid-week, another analyst said he heard the same thing and said it would make sense as CSCO has made it known they want a presence in the telco network equipment arena. Late Friday, a lesser-known firm that covers the co. said they hear it will happen in 1 to 2 mths. This firm has less clout on Wall Street but does happen to be near the firm geographically so may have better middle-mgmt. type contacts than the big boys. Given the price action on Friday, it almost seems as if this rumor was trotted out to let a big seller out of the stock- but then again I'm the suspicious type. The same instinct tells me Yeadon's not only not long the stock, but is heavily short! Anyone else get that feeling? Regardless of validity, I think we will hear more and more buyout rumors as this dog continues to languish. -Felt Burner