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

To: adam hefian who wrote (4498)	3/10/1998 8:38:00 AM
From: Lerxst	Read Replies (3) \| Respond to of 6980

Adam, You should really get that knee-jerk reaction of your's checked out medically... Stock price is down, Bay sucks, they can't manage the street, PR is lousy, stock price going to the teens, they should find a buyer and put us out of our misery, yada, yada, yada. Stock price is up, Bay is great, new products kick Cisco's butt, stock price going to the 50's, House is a god, yada, yada, yada. Did I miss anything? You seem to be implying that Bay's poor stock price over the last 3 years is simply due to our inability to manage the street. If this is the case, you have an extremely limited view of the world and a poor short and long term memory. We've all thoroughly hashed through Bay's woes over the years and managing the street is only one of many components that affected our stock price. How 'bout the biggee's like flat revenue, increased spending, decreased earnings, employee turn-over, product development chaos, unfocused and misled sales force... Think these things had anything to do with our stock price? BTW, I would be cautious in lauding the virtues of other networkers stock performance. How's Ascend and 3Com doing relative to their all-time highs? Hmmm? Cabletron? Hmmm? Bottomline, Bay has put together 4 quarters of improved business operations. The street has rewarded us, note that the stock price isn't $17 anymore. However, the street also tends to get ahead of itself, there was no way we were fairly valued at $41 last fall and the market corrected that. Bay's management team is trying to keep the street from getting wildly out of hand. We've also proven that we've overcome some of the short term difficulties we were having, but we haven't proven to the street that we can consistently perform over the long haul. Cisco has and they're rewarded for it. 'Nuff said. I need more coffee. Lerxst

To: adam hefian who wrote (4498)	3/10/1998 11:06:00 AM
From: WiseGuy	Read Replies (1) \| Respond to of 6980

Adam, you keep whipsaw back-n-forth so much in your views that it's hard to see if you believe in anything you say. Bay management is already very good at P.R. I do believe, though, that they don't have to let the street know every little bumps & humps in the quarter, especially if Bay's management were to feel confident that they can make the quarter. Casting uncertainties only weaken your stock - the street hates uncertainties & the analysts love it as they have reasons to cause volatility. If we were to look back at March '97, we would see that the quarter was also back-end loaded (~40-50% of revenue), yet Bay came through and beet street views. Notice that Cisco inferred they have been having back-end loaded quarters recently, yet I'm not even aware of it until now: In the techweb article, Cisco said. "In recent quarters, the sequential sales growth has slowed from prior levels, and a disproportionate share of the sales has occurred in the last month of the quarter" Personally, I believe Bay should do fine as Accelar strong sales should overcome any weakness. After this quarter, the street will come to brand Bay as the routing switch company (a market in which Cisco is defenseless), and the stock will zoom. Of course, I'm only a dreamer. Just some thoughts from a humble Bay shareholder... ptv