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

To: Igor Nasonov who wrote (8758)	6/14/1998 12:59:00 AM
From: zook2	Respond to of 12559

The article is thought provoking and should be encouraged. Portions of the networking industry are and will continue to see margin errosion. One of the key considerations in playing the second tier networkers is finding the companies with strong product introduction and sustainable margins. 35 to 50 % growth rates have masked the real threat that as growth rates slow margins for the marginal operators will plummet. I do not think FORE is currently in this position but watching for signs is prudent.

To: Igor Nasonov who wrote (8758)	6/15/1998 3:22:00 AM
From: Asymmetric	Read Replies (1) \| Respond to of 12559

Excerpt from Smart Money Article: What To Do Now With Tech Funds? Dow Jones Newswires -- June 5, 1998 "Everything in the portfolio was down a fair amount," fund manager Rizza says. The fund has redeemed itself this year, though, returning 22.9% so far, compared with a return of 8.6% for the average equity fund, and a loss of 2.5% for the average technology fund. The return was driven by large positions in America Online (AOL) and Yahoo! (YHOO), up 76% and 55%, respectively, this year. Rizza says he"s trimmed back his Yahoo! stake recently to just over 3% of assets. "We've had to take profits, or it would've become the entire portfolio," he says. Rizza says the fund has been in and out of just about every technology subsector, but he has had particular success in wireless equipment stocks such as Nokia (NOK/A), and networking companies, like Cisco Systems (CSCO) and Ascend Communications (ASND). Two months ago, he started buying Fore Systems (FORE), a producer of asynchronous transfer mode, or ATM, technology. As Sprint (FON), Worldcom (WCOM) and the regional bell operating companies move from circuit-based networks to packet-switched systems, to handle more voice and data traffic, Rizza sees the ATM industry growing at a 30% to 50% rate. After a troubled period last year, when Fore's stock sunk to the low teens due to inventory gluts and product delays, the company is now snapping out of its doldrums, he says.