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

To: Rainmaker who wrote (27421)	12/4/1998 12:15:00 AM
From: BWAC	Read Replies (1) \| Respond to of 36349

Rainmaker: Those were almost exactly my notes from the conference. 100% accurate. Saves me typing time. I might add: 1.) Bell Atlantic contract was lost solely on Price. Maybe this is good. If the price was way underbid, little profits to be had anyway, I would assume. BA was "the only reason for this call". Sales have slowed more than they indicated to us they would. 2.) Investment writedown is for EO Networks(sp). They said this was well known. 3.) My impression of the buyback was that they had bought very few shares. Just reading between the lines. Not so bad a call I thought. I wouldn't be surprised to see 6 and I wouldn't be surprised to see 10 plus tomorrow. Reasons: Strong cash position, still some buyback left, new ceo, still a profitable quarter, PE is not sky high, really nothing new except that BA seems to have not kept their word on sales ramp down. Watch the action carefully.

To: Rainmaker who wrote (27421)	12/4/1998 7:28:00 AM
From: Lee Allgood	Respond to of 36349

They may be referring to this Frontier, a CLEC. quote.yahoo.com If this thing goes below book (approx. $4), I'm definitely averaging down. Lee

To: Rainmaker who wrote (27421)	12/4/1998 8:28:00 AM
From: DWCraig	Read Replies (1) \| Respond to of 36349

Briefing.com PAIRGAIN TECHNOLOGIES (GAIN) [sp] 9 1/16. Warnings season is starting up. After the close Thursday, telecommunications equipment maker Pairgain (PAIR) announced that revenues and earnings for the fourth quarter will be "significantly" below expectations. The press release ascribes the problems to "continuing price erosion in the T1 access sector and the loss of primary supplier status at a regional Bell operating company for its HiGain T1 access products." PAIR is a company that has produced steady earnings now for the past two years. In each of the past eight quarters, PAIR reported earnings per share of between $0.15 to $0.17 per share, with five quarters right at $0.16 per share. Not surprisingly, the consensus expectation was thus for earnings this quarter of $0.16 per share. That, apparently, won't happen. Revenue growth for this one-time high-flyer has slowed dramatically, and given the tone of the press release, a decline in revenue seems possible. PAIR stock went over 40 in early 1997, but it has been a downward slide since. There have been intermittent rumors that PAIR would be taken over, which have provided temporary boosts to the stock. And, brokerage firms have generally stood by the stock, as it rates near the middle of the industry based on the Zacks compilation of analyst ratings. However, the last four ratings changes since June have all been downgrades. Now, PAIR looks to be in trouble again and the stock's recent rebound from 6 (a 50% move) over the past eight weeks is in jeopardy. Perhaps as significantly, though, this serves as another stark reminder of the risks in individual stocks during earnings warning season. As the quarter end approaches, companies that are not going to meet Wall Street expectations often put out warnings - with dire consequences. Today, Cabletron Systems (CS) closed at 8 7/8, down 4 7/8 from the close on the NYSE yesterday of 13 3/4 after it issued an earnings warnings. That is a 35% plunge. PAIR may not drop quite as much Friday, as it is already down from over 13 just one month ago. It will probably take a sizable hit though. Also: As noted in general commentary PairGain (PAIR) issued earnings warning... Company has really struggled to grow earnings despite strong product profile, as pricing pressures in the HDSL market have been intense... Company also named a new president and CEO... He is Michael Pascoe, former president of US operations for Newbridge Networks' of Ontario.