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

To: RANDY DAVIS who wrote (27471)	12/4/1998 1:35:00 PM
From: Emile Vidrine	Read Replies (1) \| Respond to of 36349

"Problem is with WSTL & ADTN - Their book values are likely to grow, where future for PAIR's looks like decline." How could you say Wstl and ADTN earnings are likely to grow in the future and Pair's decline. If we maintain a rational approach to your analysis, we would conclude that past performance has nothing to do with future performance. While it is true that past performance does not gurantee furture performance, past formance remains a valid indicator to project probable future performance. Pair has consistently developed cutting edge products and consistently made a profit for the last several years, while WSTL has also developed great products but has shown consistent loses and poor earnings performance for the last several years. Because of Pair's first lost of a contract and because of Pair's first decline in revenues, are you willing to view them as inferior to Wstl in performance? My own common sense tells me that Pair management and engineering staff has the same probability of repeating their past successful performance as WSTL has in repeating their poor earnings performance. Despite the poor overall xDSL climate over the last two years, PAIR has maintained positive earnings. Wouldn't PAIR's consistent performance from the past continue to grow its book value faster than WSTL's? How will WSTL grown book value without positive earnings? Good PR is not enough to grow book value; it requires positive earnings. Am I illogical in thinking this? Emile