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: blankmind who wrote (5815)	5/13/1998 7:58:00 PM
From: rupert1	Read Replies (6) \| Respond to of 6980

Thread: Not to rain on the parade, but to be consistent with my last post, I think there is a very strong possibility that this "news" is bogus and that the best course of action for those longs who feel they should have sold before it dropped to the 22-25 range is to sell in the 27/28 range (with the possibility of getting back in lower). My guess is that, in the face of questions about BAY's stock price and recent heavy volume and rumours of takeovers, that House repeated in front of a couple of analysts what he told BAY personnel in the regular quarterly meetings recently, namely, that he is not trying to sell BAY, but he is looking to increase shareholder value by adding substance : that if an offer for BAY were to materialize it would not be up to management but up to the shareholders. I would doubt very much that his criticisms of the low valuation the market has been putting on BAY's stock relative to CISCO's could be interpreted to mean that he would welcome offers of takeover at a higher price. Note that the story is unconfirmed and that BAY's PR person has said that it is "basically innacurate". Furthermore, if it were true the price of the stock should be nearer 29/30 today. The fact that it is not shows that some MM have taken advantage of the "report" to unload massive holdings of BAY. Given the enormous publicity (the story is still being featured in US and European media outlets this evening) and given the enormous volume, the stock price might bob around current levels for a bit, but I would not be surprised to see it plunge if there is a denial or no follow up. It would not surprise me if management made housekeeping arrangments beneficial to themselves and employees in the event of a takeover, because a takeover has been a distinct possibility at BAY for about three years and the urgency of havign one waxes and wanes; two years ago it drove the share price up from 23-29 regularly, held it at 23 for a time before it plunge to 15. Just my opinion - I realise I am sticking my neck out and I might be disproved very quickly. I would buy BAY again at $23.50 (but preferably at $21.50). I continue to believe that BAY ought to be and might be taken over in the next six to nine months, but I also believe that there is a distinct possibility that it will not be taken over and will seek stategic alliances of its own. Good Luck. Victor