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Technology Stocks : FORE Inc. -- Ignore unavailable to you. Want to Upgrade?

To: jas cooper who wrote (8252)	4/24/1998 5:33:00 PM
From: jach	Respond to of 12559

Duran said new high-speed Optical Carrier 12 products, which operate at 622 megabits per second, lifted Fore's results. These include an OC-12 adapter card for servers and an OC-12 interface for switches. These OC 12 products are a "step up" from OC-3 products, which transmit data at 155 megabits per second, Duran said. And they represent a "tangible alternative" to emerging Gigabit Ethernet products, which are still just beginning to come to market, he added. >> very correct after the facts Despite increased sales and marketing spending, lower research and development spending lifted Fore's operating margins in the fourth quarter, he said. The company told analysts it expects revenue to rise by 5% to 10% sequentially over the next few quarters and operating margins to climb to 15% by the fourth quarter of fiscal 1999 compared with 10% in the quarter just reported. Fore also said it expects gross margins, which were 55.1% in the fourth quarter, to be between 55% and 56% going forward. Duran said he expects Fore to launch the ASX-4000, a high-end ATM switch with a 40 gigabit-per-second capacity, at the Interop trade show in early May. The analyst lifted his earnings estimates to 64 cents a share from 62 cents for fiscal 1999 >> very good indicators, target to be 64x.45 = 28.8$

To: jas cooper who wrote (8252)	4/25/1998 11:12:00 AM
From: Trenton A. Scott	Respond to of 12559

Well, this is better news than I expected. A nice surprise during a usually slow quarter . . . but this news is not that great. The growth rate is still half of what I expected it to be two years ago. The kind of price appreciation I was hoping for is still not present, but it's good to know Fore's customer list at least is not shrinking and a %15 annualized rate of growth with 55% margins on the product line is nothing to sneeze at. So, I will continue to hold . . . and wait for the REAL migration wave over to ATM to begin. Maybe, just maybe, Fore will be chosen by the marketplace as the vendor-of-choice during this hoped-for mass conversion. If this happens, only then will my expectations be fully met. At the least, these numbers justify a much more attractive price for any future takeover attempt! For the short term, I just hope to get back to $20.50 . . . my break-even point! Regards, Trenton.

To: jas cooper who wrote (8252)	4/29/1998 2:42:00 AM
From: Asymmetric	Read Replies (1) \| Respond to of 12559

First Call Earnings Estimates Note that Fore's PEG is listed as 0.77 while industry and sector PEG's are 1.14 and 1.21 respectively. If Fore can continue execute over next quarter or two, no reason Fore should not be at high end of the range, ie close to 1.21 PEG. This along with widespread/consensus earnings estimates revision upward should underpin further price moves to the upside. With Fore's recent price rise putting it's PEG closer to 0.85, a rise in PEG to 1.21 is still about another 50% from here. I can see a price range of 27-30 over next 6 months, IMHO. Peter. FIRST CALL EARNINGS ESTIMATES FORE FORE Systems 04/27/98 Industry: Com-wo AT&T SIC: 3576 Latest Price: $19.25 1999 P/E: 31.6 Analyst Recommendation: 2.2 QTR QTR FY FY June 98 Sept 98 March 99 March 00 --- --- -- -- CURRENT MEAN EPS 0.13 0.14 0.61 0.82 Number of Brokers 15 13 15 8 Median 0.13 0.14 0.60 0.81 Standard Deviation 0.00 0.01 0.03 0.05 Current High 0.13 0.15 0.66 0.90 Current Low 0.12 0.12 0.52 0.75 Year Ago EPS 0.05A 0.07A 0.35A 0.61 Current vs. Year Ago Change 160% 100% 74% 34% Report Date wk/Jul 22 wk/Oct 28 wk/Apr 23 - EARNINGS ESTIMATE REVISION MOMENTUM Up Revisions last 7 days 7 8 12 0 Up Revisions last 30 days 7 8 12 0 Down Revisions last 7 days 0 0 0 0 Down Revisions last 30 days 0 0 0 0 EARNINGS ESTIMATES CONSENSUS TRENDS Current Mean 0.13 0.14 0.61 0.82 7-days ago Mean 0.12 0.13 0.56 - 30-days ago Mean 0.12 0.13 0.56 0.70 60-days ago Mean 0.12 0.13 0.56 - 90-days ago Mean 0.12 0.13 0.57 - COMPARATIVE ESTIMATES AND TRENDS Industry - Com-wo AT&T 8.36 10.47 46.83 - Current vs. Year Ago Change -5% -2% 14% - Sector - TECHNOLOGY 8.87 9.61 41.32 - Current vs. Year Ago Change -2% 23% 18% - WSJ/DJ US Index 11.37 12.07 48.62 - Current vs. Year Ago Change 9% 13% 15% - Ratios Relative To: Company Industry Sector WSJ/DJ P/E on 1999 Cal Yr Mean 24.7 26.31 21.58 18.74 PEG on 1999 Cal Yr Mean 0.77 1.14 1.21 1.47 RECOMMENDATION AND GROWTH RATES RECOMMENDATIONS LONG TERM GROWTH RATES Current Mean 2.2 Next 5 yrs - Median 32% Number of Brokers 14 Number of Brokers 4 Industry Recommendation: 2.1 Industry Growth Rate: 23% 7-days ago Mean 2.2 Next 5 yrs - High 40% 30-days ago Mean 2.3 Next 5 yrs - Low 25% 60-days ago Mean 2.4 Last 5 Years 98% 90-days ago Mean 2.4 Diff. from Industry -0.1 Rel. to Industry 1.4 Diff. from Sector -0.1 Rel. to Sector 1.8 Diff. from WSJ/DJ US 0.0 Rel. to WSJ/DJ US 2.5 Transmitted: 04/28/98 08:18 (E_FORE)