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

To: Ken Turetzky who wrote (9677)	11/18/1998 12:36:00 AM
From: jach	Respond to of 12559

<Fore, for instance, "doesn't give Lucent what they need since its ATM gear isn't designed to support a full range of services like frame relay> Frame Relay can be added in no time, it's simple. Either an addon frame card or an external service unit. What LU needs is something else that is rather a pretty broad subject to discuss. One thing that FORE brings to the table for LU is the large installed base of Enterprise and large accounts such as companies like Microsoft, shell; in goverment and state agencies; in universities, and various foreign establishments. LU can get a very nice start in these accounts and a great opportunity to expand. LU is strong in telecom and Service Provdiers area but rather weak in the Enterprise area for networking. They have Octel for messageing and with FORE they'll have a very strong hold in both voce processing and data networking for Enterprise. From there, extending to other WAN networking services will be logical move. Technology is not the only thing for buying a company, there are others, and a key one is that it makes business sense. Another key point in acquiring high-tech companies is the ability to retain the technical people. FORE, in east coast, and sort of similar culture with LU will likely be able to keep most of their key people. FORE is now close to 1B$ in sales. With LU sales force this number can get to double in a year. FORE mkt value is 1.5$ now and paying 3B$ to get 2B$ in revenue is a big big steal. 3B$ will have FORE at around 30$, if FORE can fetch what STRM got, that is 8 times sales will be 65$. So, IMO, FORE at this price is a bargain.