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

To: Alex Raytselsky who wrote (10847)	3/14/1999 10:27:00 PM
From: jach	Read Replies (1) \| Respond to of 12559

Based on last qtr run rate, FORE is between 400k-425K per employee, which is quite good. A key point to consider is that having a very high rev/employee is not necessarily great, such as csco. Why ? because the chance of that high number coming down is more likely than to go up more from the already very high level. Also, the high number is the inbalance of short term demand for a few products that will eventually dry out. This is true especially for CSCO, competitions from startups and large companies like LU and NT will eventually drive the margins and expense higher (such as, more people to support the large telecom companies and the low-end products) and thus driving down the rev/employee and the stock price as well. CSCO is way overpriced at these levels. LU+NT have about the same mkt cap as CSCO, but LU+NT generate five times more revenue and three times more profit than CSCO. Based on LU+NT earnings and revenue ratios, adjusted CSCO stock price should be about 35$. imo.