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

To: StockMan who wrote (5458)	4/20/1998 5:37:00 PM
From: Paul Fine	Read Replies (2) \| Respond to of 6980

Stockman- You know my position has been longterm with Bay. That has been a lousy investment. Bay is selling about where it was when House came on board 19 months ago. The market is up about 40% in that time, and Cisco hit another new all-time high today(the only networker who is even close to an all-time high). The fact is that bgg is right; Bay has been a very poor buy and hold investment. However, it could have been an outstanding trading investment the past few years(or past 5 years for that matter). All the things you knock cisco for are the things that have made them successful. First to market too soon doesn't bring in the earnings. I said a few days ago; Bay is betting the farm on Accelar coming through NOW, not a year from now. I don't know that the market is ready, and making up for the weakness in the rest of the portfolio with only one big product is not easy(witness this past quarter). Bottom line is that DLJ has been right for the past 6 months, with the exception of upgrading Bay after the March conf. call and saying the worst was over. Bay had better damn well make the +10% sales this quarter(minimum), with good sales(not test placements) in non-Bay accounts. They also better figure out a way to make money too. As you can probably gather, I am not a happy camper. Too many press releases and magazine awards and not enough sales! Been there, done that. I truely believe Cisco will remain #1 in networking. It remains to be proven that Bay can be a powerhouse #2, or just one of the pack. Paul

To: StockMan who wrote (5458)	4/21/1998 12:47:00 PM
From: The Phoenix	Respond to of 6980

Yes lets be realistic and evaluate Cisco outside of Bay. Its growth has slowed to 25% annual growth and is in a declining trend, and it has a very high valuation.! The network industry is growing in the 20% range well then, cisco...acording to your figures is growing faster than the market rate. Perhaps that why analysts are bullish on Cisco and perhaps that's why they have a high valuation. BAY..missed and has flat to decling revenues. Perhaps this is why analysts are bearish on BAY and why it has such a low valuation. I just can't figure out why this is so hard for you to comprehend. Even the BAY bulls here on this thread disagree with you Stockman.. What's the trouble? Gary