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

To: rupert1 who wrote (5816)	5/13/1998 8:28:00 PM
From: Wayners	Read Replies (1) \| Respond to of 6980

No. You've got to look at the basic support and resistance levels to make your target predictions. Firm resistance is at $30 even. BAY will not break that period on the first try. The one day spike today held all day long. Good support for now at $27 even. I'd expect a modest gap up tommorrow and by Thurs./Friday to have challenged and gotten rejected at $30 intraday. From there I'd expect a retrace to not lower than $27 over several days to a week.

To: rupert1 who wrote (5816)	5/13/1998 9:26:00 PM
From: James Song	Respond to of 6980

Victor, I completely agree with you. But the rumor did provide an opportunity for me to unload all my BAY holdings. I am happy that I am out of BAY with profit while I would have incurred loss with the price one day ago. --James

To: rupert1 who wrote (5816)	5/13/1998 9:30:00 PM
From: jkb	Respond to of 6980

<<I also believe that there is a distinct possibility that it will not be taken over and will seek stategic alliances of its own.>> I believe that to be more than a distinct possibility - more like reality. But nevertheless, although fundamentals are relatively weak - the fact that BAY is the strongest alternative to CSCO in the market right now - and the fact that BAY trades at 2.4 P/S as compared to CSCO's 10 - makes me think that anywhere in the $27 - 35 range is still a fair value - irregardless of PE's.

To: rupert1 who wrote (5816)	5/13/1998 9:42:00 PM
From: jkb	Respond to of 6980

Wednesday May 13, 8:02 pm Eastern Time Nortel dips on Bay Networks report TORONTO, May 13 (Reuters) - Shares in Northern Telecom Ltd. slid in early action on Wednesday after a published report said that the telecommunications equipment company had made an offer for Bay Networks Inc. and been turned down. Nortel officials declined comment on the report. ''We are always evaluating possible acquisitions that are out there but as far as this one goes, it's no comment,'' spokesman Peter Janecek said.

To: rupert1 who wrote (5816)	5/13/1998 10:05:00 PM
From: Bosco	Read Replies (2) \| Respond to of 6980

Dear Victor - this is good advice, but I don't know about the audience. Don't get me wrong, the scenario you ve stated is not uncommon. I can count a few other situations. However, for those who arbitrage BAY based on this rumor should be nimble enough to take care of themselves. Also, from a couple of response, it seems that a few people have used today action to bail. That is a good measure to protect the downside. The rest are really BAY bulls. I mean, while I cannot speak for others and it may be nice for a big fat premium if indeed BAY is in play, I m holding BAY not because of the takeover. The specialists are here to provide liquidity. So they bet against the rumor. I suppose traders should follow suit. However, IMHO, investors should see pass that. Otherwise, they end up neither bull nor bear and allow other people's emotion to determine their investment strategy. In a way, when BAY was hot, everyone wanted to see the moon. When it was cold, everyone thought the end of the world was near. Ultimately, yes, the traders should protect themselves. Maybe some of the investors can hedge their holdings with options. Personally, I love bare nuckle investing <vbg> Btw, I believe 28ish is a huge resistance for BAY. Unless there is some actual development, rumor or otherwise, the specialists will try to defend their option plays [expiry this Fri.] rgds Bosco

To: rupert1 who wrote (5816)	5/14/1998 1:58:00 AM
From: blankmind	Respond to of 6980

. The fact that it is not shows that some MM have taken advantage of the "report" to unload massive holdings of BAY. - vepoc there has been abnormally heavy volume longer than today. who has been purchasing all these blocks? we shall know in the next few days if any forms are filed with edgar regarding 5% accumulation or more. as i posted a few days ago when someone thought about selling, how could you sell with so much volume? i still would not sell so long as we have so much volume.