Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John Messbauer who wrote (5350)	4/16/1998 9:13:00 PM
From: Gary Wisdom	Read Replies (3) \| Respond to of 6980

What's wrong with all of you? Bay will be up huge tomorrow. After all, didn't they miss earnings badly? And, don't we all know what happens when you miss in this market? EVERYONE LOVES IT AND BUYS MORE. Funny, isn't it? This market makes absolutely no sense. Ascend is the only networker to beat earnings and they went down after earnings. Go figure. BTW, I am neither short nor long Bay. Just love reading threads after earnings.

To: John Messbauer who wrote (5350)	4/16/1998 10:25:00 PM
From: Doug	Respond to of 6980

John:The errors arise from the value you place on BAY's technology vrs the rest. Its easy to get embroiled in discussing switches,protocols,speed etc. However the shrewd Investor sees technology directly in terms of Rev & Income growth and their trends. The trend for rev & income for BAY has been flat to down. This means R&D has not created a measurable increase in revenue for BAY at the expense of its Competitors. Further the decline of Income indicates BAY has to sell near Cost to maintain that revenue. Fortunately, an Analysis of the other 2nd tier Companies indicates identical problems. There either has to be a R&D breakout or a Consolidation to solve these systemic ills which are beyond a CEO's ability. As Engineering/Sales personnel in this Industry are more migratory than other Industries it is unlikely that a long life R&D breakout is feasible. That so, the salvation can only come thru consolidation.