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

To: StockMan who wrote (6755)	6/24/1998 1:18:00 PM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 6980

Nortel is above 55 for the first time since the merger announcement. Is the street changing its opinion about the merger?

To: StockMan who wrote (6755)	6/24/1998 6:11:00 PM
From: Paul Fine	Read Replies (1) \| Respond to of 6980

Stockman- Not to belabor the point, but you and I have a different view of analysts. While they are interested in the forward-looking statements in the conf. call, history shows that they are very quick to punish a tech stock that surprises on the downside. Bay has not warned, and in fact, has reiterated that they will make the consensus. I am simply saying that they MUST. If they miss, then they have no credibility with the analysts. Then, the forward-looking statements are meaningless, because if you cannot trust the messenger, how can you trust the message? I am not predicting they will miss, I am just saying that we cannot discount the importance of Bay delivering as promised just because the stock price is supposedly tied to NT. Re "earnings", you missed my point. I said Bay had to make their "numbers". That isn't just earnings. In fact, IMO, the revenue number is actually more important at this stage. How they make the numbers will also be important, as usual, including inventories in the channel, GS&A expenses, etc. It is a complete package, but without the topline(revenues), the rest can be just a shellgame. Sorry if this back and forth between Stockman and myself is boring the rest of you. I promise not to revisit this issue again until after the numbers are released in mid-July. Paul