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

To: Brad Ruffin who wrote (26592)	10/18/1998 6:14:00 PM
From: kvogel	Read Replies (2) \| Respond to of 36349

Brad, PAIR's decline is simply related to revenues and earnings. Although the company is making money and has great balance sheets it is currently no longer a growth company($.16 every quarter) and momentum players have left. Management has explicitly addressed this issue in the CC and has the types of products needed to become a growth company again. Also, the TELCOs have been in disarray due to M&A and fights over long distance and local markets. I believe they will wake up soon and make a bigger effort in the DSL area. PAIR products are an important part of this by bringing costs down and simplifying installation. I think PAIR will be a growth company again in '99 and this will bring back a PE directly proportional to growth rate. Hoping for 20-25% and earnings of $.75-.80 in '99. This is optimistic but new products and higher margins are in the cards IMHO. This will lead to upgrades and a return of MO players. We'll probably have to wait til early '99 to see if this develops but I am confident. Karl