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

To: Sherman Chen who wrote (3956)	2/24/1999 4:28:00 PM
From: Neil H	Read Replies (1) \| Respond to of 4135

Wednesday, February 24, 1999 2HRS2GO: Buyout buzz buoys Xylan -- again By Sergio G. Non February 24, 1999 1:48pm ZDII When Xylan Corp. (Nasdaq: XYLN) made its presentation Tuesday at the annual BancBoston Robertson Stephens technology conference in San Francisco, it started with a slide that asked: "Why is our stock price so cheap?" Xylan's mercurial head honcho Steve Y. Kim may not worry long. His networking company's stock was up as much as 16 percent today, as the investors renewed their quarterly rite of passing around Xylan takeover rumors. French communications equipment giant Alcatel is the name being bandied about again, but nothing has come before of the rumors, so why should anything change now? Nothing has changed about the way the company conducts itself, and probably nothing will change as long as Kim is running Xylan. As one analyst who follows the company notes: "Kim is a controversial figure. He got a lot of Korean investors on board by basically telling them Xylan was going to be the next Cisco. After taking the company public, he's back to the market to raise more money in almost a record short time. He's been shot at in a parking lot. "It's a big reason why this stock doesn't get the multiple that other data networking stocks trade at -- because Steve is such a loose cannon." Understandably, the analyst doesn't want be identified -- after all, who wants to be on the wrong side of an artillery piece? Plus, you don't want alienate a potential client if there really is a buyout deal to get a piece of. But as always with Xylan, it's a big if. Kim has said before that he's looking to sell Xylan as soon as possible. "He'll say what's necessary to push the stock up," says the analyst. Xylan, which makes switches for high bandwidth networks, is certainly in a fast growing business. Although it did miss analyst estimates last quarter, the company topped forecasts for several quarters previous. And from a technical standpoint, you could argue that Xylan has finally broken out of a slump by going through the low 20s barrier. Unfortunately, the buyout buzz has been wrong before. If you want to play the takeover game, hey, it's your money. But don't chase Regards Neil

To: Sherman Chen who wrote (3956)	2/24/1999 4:56:00 PM
From: sejookim	Respond to of 4135

I have fair size long position at $10-15, my plan was to pick up more shares if Xylan comes down to $16 or lower. My subjective opinion is that Xylan deal will happen sometime this year at $40-45. Current rumor is at $30-35, so it's probably just a rumor like other times. Puts will give short term profit if I'm right, however, I have not purchased any,yet...voulume's too high.