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

To: tech101 who wrote (6648)	6/18/1998 9:54:00 AM
From: Doug	Read Replies (2) \| Respond to of 6980

Youlu: Nothing wrong with the hard numbers but the logic about valuation is wide open to challenges. In a share swap, the history of earnings and its growth are important. Some NT shareholders see BAY as a drag for life. It is like having a child in ones family who is prone to poor health. Those shareholders are the ones willing to sell. In addition, the shorts are egging them on by dropping the price. If prices continue at these levels, holders of Bay could be faced with more uncertainity. The agreement requires ratification by their respective shareholders. NT shareholders could vote against. That way they get instant gratification as the stock price will go back towards its high. Bay's price will slump. If BAY's earnings are weak, that action will only be re-enforced. It is indeed strange that with a $38 bid now valued at $30, no other cash bids have appeared. I would have thought that a bidder at the $33 mark could make a grab. It is obvious that there are none todate. A good strategy now is to switch to NT but that involves an additional cost viz the difference between the 2 prices.+ commissions. I am not sure if " wait and hold" will prove better.