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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Doug Bean who wrote (25348)	8/11/1998 8:03:00 PM
From: Thomas F. Ramero	Respond to of 36349

Takeover speculation????!!!! Get real! Mr. Strauch's shares are priced at 7 cents, and he has everything to lose. Why would he sell now??????????? I think that the best thing we all can do now is scrape the change from the bottoms of our pockets and buy at these levels. That way we get our average buy prices down so when that big buyout in the sky does come in a year or two, we will all be fat and happy! Mr. Strauch's boat isn't named "The Turnaround" for nothing! Cheerio!

To: Doug Bean who wrote (25348)	8/12/1998 9:28:00 AM
From: Bobby G.	Read Replies (1) \| Respond to of 36349

Doug, Here's how I see it. Other opinions welcome. PAIR would probably be sold for no less than 4x sales. For '98 PAIR should have sales of about $300 million (first six months it's been $146MM). At $300MM we're looking at $4.29/share in sales. $4.29 x 4 = $17.16/share or $1.2 billion. But wait. We have to account for PAIR's $200M in cash and short term investments. That brings the value up to $1.4 billion. $1.4 billion divided by 70MM shares is a nice even $20/share. My opinion is that PAIR's management could get a few more dollars per share out of the buyer based on the fact that a) the worst seems to be over for them and they are well-positioned for the future; b) they are being sought by a number of major companies (LU, NT, ALA, maybe even CSCO and others). Just my view. Others welcome. Bobby G.